Page 82 - BIPAR Annual Report 2020_EN short

- International Affairs

Background In 2019/2020 Mr. Jon Jensen (IIABA - North America) chaired WFII. Considering consistency with the Financial Action Task Force (FATF) could be strengthened. When in June 2019 a first draft
the COVID-19 outbreak and the fact that the WFII World Council Singapore Recommendations. In response to the consultation, WFII report was presented, WFII provided comments and a WFII
2020 meeting in person was cancelled it was decided to keep the Executive made suggestions about flexibility and the optimisation delegation discussed the draft report with the drafters. WFII
Founded twenty years ago, The Committee as was composed for one extra year. Mr. Jon Jensen was of the ML/TF assessment. In order to avoid duplication commented, inter alia, that the report should make clear that
World Federation of Insurance unanimously reappointed Chairman 2020/21 and Mrs. Elena Jiménez de of effort, and to optimize the process, WFII proposed that it is in the interest of the consumer, that all actors distributing
Andrade (COPAPROSE, Latin America) was unanimously reappointed Incoming consideration should be given to allow intermediaries and insurance products, regardless of their title, should fall under
Intermediaries (WFII) represents
Chairperson 2020/21. insurers to distribute the tasks amongst them. This could the scope of the regulation and supervision (the activity-
insurance agents and brokers from be done in a contract between insurer and intermediary. based approach). The report should also include the message
over 100 national associations in The WFII Secretariat is run by the BIPAR Secretariat in Brussels. Mr. Nic De Furthermore, WFII proposed mentioning in the ICP that that there is a distinction between non-life insurances/
Maesschalck, the BIPAR Director, is also the Director of WFII, and Mrs. Isabelle intermediaries should take steps, proportionate to their pure risk life insurances and life insurance products with
over 80 countries across the world.
Heuninckx is Policy Adviser for WFII Affairs. For more information on WFII, nature and their size, to identify, assess and understand an investment element. Many jurisdictions already make
Speaking for intermediaries with
please visit www.wfii.org. their ML/TF risks. this distinction when regulating insurance distribution. A
one single voice to international statement should also be included about certain limits of the
institutions such as the OECD, the Activities with the OECD report due to the enormous complexity and variety of the
Examples of 2019/2020 WFII activities sector when trying to compare words, business models and
IAIS, the FATF, the IMF and the UN,
WFII attended the 2019 meetings and roundtables of the legislation from around the world. Considering the potential
has contributed, through the years, Activities with IAIS Insurance and Private Pensions Committee (IPPC) of the misunderstandings in terms of terminology, WFII asked

to a better understanding of the OECD. The following issues, inter alia, are on the agenda of the drafters to avoid recommendations. More specific, as
Issues Paper on Use of Big Data Analytics in Insurance (BDA) the IPPC and followed by WFII: the word independent has a different meaning in different
critical role played by insurance
jurisdictions and triggers different regulation, WFII insisted
intermediaries in global trade and
The IAIS Market Conduct Working Group (MCWG) worked in 2018 and 2019 on Report on insurance intermediation: regulatory/supervisory that paragraphs regarding independence of intermediaries
the efficient functioning of insurance an Issues Paper on Use of Big Data Analytics in Insurance. Issues Papers provide framework and market conduct should be deleted. Many of WFII comments were taken into

markets. background on particular topics, are primarily descriptive, not meant to create consideration and important paragraphs, supportive to our
expectations on how supervisors should implement supervisory material and In 2018-19, the IPPC examined the regulatory and sector, were inserted. The final report is a description of
often form part of the preparatory work for developing standards. This Paper supervisory framework of insurance intermediation for both regulation in place in different countries and, contrary to its
International institutions dealing gives a state of affairs of the use of BDA in the insurance sector and of the incumbent and emerging digital distribution channels with initial intention, and in line with what WFII always said and
with insurance intermediation issues, benefits and risks that come with it. WFII commented several times on the draft the view of identifying areas where consumer protection wrote, the IPPC has not included policy recommendations.
Paper and participated in two MCWG meetings as an expert. WFII commented
publish, on an ongoing basis, (cross-
on the wording of several paragraphs and highlighted the importance of a
sectoral) principles, guidelines
regulatory and supervisory framework that is technology-neutral, emphasizes
and papers on financial consumer on an activity-based approach and respects a level playing field for all market
protection and market conduct. As players. It is the role of regulators and supervisors to safeguard that the digital
development takes place in an appropriately regulated insurance market.
these principles, guidelines and
All firms providing insurance intermediation services should be regarded
papers often form the basis of national as insurance intermediaries and should be regulated as such, regardless of
legislation, it is important that they the medium or techniques they use to deliver such services. Regulators and
supervisors should keep a neutral and objective position with regard to all
reflect the positions of WFII. By
acceptable business models.
contributing to the drafting process,
by participating in public hearings and Review of ICP 22 on Anti-Money Laundering
by inviting representatives from these
In June 2019 the IAIS launched a consultation of the revised Insurance Core
institutions to meet World Council
Principle 22 on Anti- Money Laundering and Combating the Financing of
members -professional insurance Terrorism. ICP 22 requires insurers and intermediaries to take effective
intermediaries- WFII explains, measures to combat money laundering and the financing of terrorism. This
ICP was adopted in October 2013 and was in 2019 reviewed and updated
promotes and defends the interests of
by the IAIS in order to improve its usefulness to supervisors and to enhance
intermediaries.

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