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Chapter 9 Insurance regulation 9/5

7. Relationship with regulators: insurers and intermediaries should deal with their regulators in an
open and cooperative way.
8. Complaints: insurers and intermediaries should support a system of complaints handling where
applicable.
9. Management and control: insurers and intermediaries should organise and control their affairs
effectively.
10. Market conduct: insurers and intermediaries should observe proper standards of market conduct.
11. Clients’ assets: insurers and intermediaries must arrange adequate protection for clients’ assets
when they are responsible for them, not just their own (all regulators) regulators in other
jurisdictions.

A3 Regulators’ supervisory tools

Regulators have a broad range of supervisory tools available at their disposal. These tools can be
broadly categorised into diagnostic (used to identify and monitor risks) and remedial (used to mitigate
risks and remedy shortcomings).
A3A Diagnostic tools

Diagnostic tools seek to identify problems at an early stage and allow regulators to engage with the
company before these problems become a serious threat to their supervisory objectives. To learn more
about the company’s businesses and risk management practices, regulators may need to ask them for
more information; there may be information gaps or there may have been substantial change in their
activities, for example.

A3B Remedial tools
Remedial tools will in many cases require the company to take action and work with the regulators to
achieve a specific outcome. For instance, in an inspection the regulator may come across certain weak
controls and governance practices, which they will then require the company to remedy and
subsequently provide them with progress reports on the remedial actions taken. Reference copy for CII Face to Face Training

B International Association of Insurance
Supervisors (IAIS)

The International Association of Insurance Supervisors (IAIS) was established in 1994 to promote
cooperation amongst insurance supervisors and other financial sector supervisors.
The IAIS represents insurance regulators and supervisors of more than 200 jurisdictions in nearly 140
countries. Since 1999, the IAIS has also welcomed insurance professionals as observers and currently
there are more than 130 observers representing industry associations, professional associations,
insurers and reinsurers, consultants and international financial companies.
The IAIS issues global insurance core principles, provides training and support on issues related to
insurance supervision, and organises meetings and seminars for insurance supervisors.

The IAIS coordinates its work with other international financial policymakers and associations of
supervisors or regulators, and assists in shaping financial systems globally. In particular, the IAIS is a
member of the Financial Stability Board (FSB), member of the Standards Advisory Council of the Chapter
International Accounting Standards Board (IASB) and partner in the Access to Insurance Initiative (A2ii).
In recognition of its collective expertise, the IAIS also is routinely called upon by the G20 leaders and 9
other international standard setting bodies for input on insurance issues as well as on issues related to
the regulation and supervision of the global financial sector.
An Executive Committee, whose members represent different geographical regions, heads the IAIS. It is
supported by three main committees – the Technical Committee, the Implementation Committee and the
Budget Committee.
These committees form sub-committees and working parties to accomplish their objectives.