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Insurance regulation

Contents Syllabus learning
outcomes
Learning objectives

Introduction
Key terms
A Role of the insurance regulator 4.1, 4.4, 4.5, 4.6
B International Association of Insurance Supervisors (IAIS) 4.2
C Capital adequacy of insurers 4.7, 4.8, 4.9
D Combating financial crime 4.3, 4.10, 4.11, 4.12
E Fraud 4.13, 4.14

Key points
Answers
Self-test questions Reference copy for CII Face to Face Training

Learning objectives
After studying this chapter, you should be able to:
• describe the role of the regulator in the insurance industry;
• outline the objectives, principles, standards and guidance papers of the International Association of
Insurance Supervisors;
• outline the objectives and the recommendations of the Financial Action Task Force (FATF);
• describe the different types of regulatory approaches;
• explain the need and scope of prudential and market conduct regulation;
• outline the tools used by regulators to supervise the insurance industry;
• explain the importance of establishing and maintaining capital adequacy;
• outline the different approaches to capital adequacy;
• describe the relationship between capital adequacy and solvency controls levels;
• describe the regional and global problems of money laundering and terrorism financing; Chapter
• define money laundering as defined by the FATF;
• outline the main principles and elements of customer due diligence; 9
• describe the different types of fraud faced by insurers; and
• explain how insurers manage fraud.