Page 87 - BIPAR Annual Report 2020_EN

Activities of the Brokers’

Committee - International Affairs

Background In 2019/2020 Mr. Jon Jensen (IIABA - North America) chaired WFII. Considering
the COVID-19 outbreak and the fact that the WFII World Council Singapore
2020 meeting in person was cancelled it was decided to keep the Executive
Founded twenty years ago, The Committee as was composed for one extra year. Mr. Jon Jensen was
World Federation of Insurance unanimously reappointed Chairman 2020/21 and Mrs. Elena Jiménez de
Andrade (COPAPROSE, Latin America) was unanimously reappointed Incoming
Intermediaries (WFII) represents
Chairperson 2020/21.
insurance agents and brokers from
over 100 national associations in The WFII Secretariat is run by the BIPAR Secretariat in Brussels. Mr. Nic De
Maesschalck, the BIPAR Director, is also the Director of WFII, and Mrs. Isabelle
over 80 countries across the world.
Heuninckx is Policy Adviser for WFII Affairs. For more information on WFII,
Speaking for intermediaries with
please visit www.wfii.org.
one single voice to international
institutions such as the OECD, the
Examples of 2019/2020 WFII activities
IAIS, the FATF, the IMF and the UN,
has contributed, through the years, Activities with IAIS

to a better understanding of the
Issues Paper on Use of Big Data Analytics in Insurance (BDA)
critical role played by insurance
In the last 12 months, the BIPAR Brokers’ Committee chaired by André Van Varenberg focused its work mainly on the
challenges faced by insurance and financial intermediaries including, inter alia, transparency rules, solvency rules for intermediaries in global trade and The IAIS Market Conduct Working Group (MCWG) worked in 2018 and 2019 on
insurance companies, cross-border activities and digitalisation. the efficient functioning of insurance an Issues Paper on Use of Big Data Analytics in Insurance. Issues Papers provide

markets. background on particular topics, are primarily descriptive, not meant to create
The meetings of the Brokers’ Committee, which were held during the BIPAR Annual General Meetings on 21 June 2019 and expectations on how supervisors should implement supervisory material and
during BIPAR mid-term meetings on 30 January 2020, gave the possibility to members of the Committee to discuss these often form part of the preparatory work for developing standards. This Paper
topics as well as other issues. International institutions dealing gives a state of affairs of the use of BDA in the insurance sector and of the
with insurance intermediation issues, benefits and risks that come with it. WFII commented several times on the draft
The review of the Solvency II Directive by the European Commission was discussed. Mr. Karel Van Hulle (Associate Professor publish, on an ongoing basis, (cross- Paper and participated in two MCWG meetings as an expert. WFII commented
at the Economics and Business Faculty of KU Leuven) gave to the Committee members a good insight into the technical on the wording of several paragraphs and highlighted the importance of a
provisions laying down the solvency capital requirements that insurance undertakings are required to hold. Moreover, the sectoral) principles, guidelines regulatory and supervisory framework that is technology-neutral, emphasizes
Committee members took note of the fact that the review also covers the regime of Insurance Guarantee Schemes (IGS) and papers on financial consumer on an activity-based approach and respects a level playing field for all market
and the supervision of cross-border business (FOS/FOE). 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
Furthermore, the Brokers’ Committee had discussions on the evaluation of the new national rules related to transparency All firms providing insurance intermediation services should be regarded
and remuneration. During a panel moderated by Mr. Roger van der Linden (Deputy Chairman of the Brokers’ Committee), papers often form the basis of national as insurance intermediaries and should be regulated as such, regardless of
the Committee members exchanged views on the consequences of the ban on commission in the EU member states, legislation, it is important that they the medium or techniques they use to deliver such services. Regulators and
where it has been introduced. supervisors should keep a neutral and objective position with regard to all
reflect the positions of WFII. By
acceptable business models.
On the Brokers’ Committee agenda there had also been the technological developments and their impact on the business contributing to the drafting process,
models in the insurance sector, including distribution of products and intermediation, and the multinational/cross-border by participating in public hearings and Review of ICP 22 on Anti-Money Laundering
insurance programs and placing. 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.

86