IAIS takes action on G20 and FSF recommendations

February 26 2009: The International Association of Insurance Supervisors (IAIS) has today issued two progress reports to the Group of Twenty (G20) and Financial Stability Forum (FSF). These reports respond to G20 and FSF recommendations in 2008 to enhance sound regulation, strengthen transparency and reinforce international cooperation. They address specific actions the IAIS has recently taken, including:

• charting a new focus for the IAIS on the supervision of internationally active insurance groups;

• working with the International Organization of Securities Commissions and the Basel Committee on Banking Supervision to identify important regulatory gaps and areas for enhanced supervision;

• providing guidance on the use of supervisory colleges in group-wide supervision.


The IAIS has identified several issues facing insurers and insurance supervisors, such as:

• unregulated entities within a group, posing risks and liquidity demands for the overall group;

• the complexities of supervising cross-border groups due to varying legal environments and coordination challenges among supervisors; and

• regulatory arbitrage by taking advantage of differences in regulatory requirements. Peter Braumüller, Chair of the IAIS Executive Committee, noted that “the IAIS is taking an active role to closely monitor financial crisis developments and its particular impact on the global insurance sector.”

The IAIS will continue to remain vigilant and respond as issues emerge from the financial crisis.



In fact, 2007 was an especially profitable year for reinsurers, with some reporting the best results over the past five years. As a result, the reinsurance industry has a solid financial base to face the challenges of the continuing financial crisis. However, as the impact of the financial crisis grows in scope, reinsurers may be faced with difficult market and credit conditions.

Peter Braumüller, Chair of the IAIS Executive Committee, noted that “amid the ongoing financial turmoil, the global reinsurance market has proven relatively robust and resilient against direct shocks thus far, which has contributed to both the stability of the global insurance markets as well as ultimately the security of individual insurance customers”.

(This is Press Release of IAIS)

Global reinsurers remain resilient amid financial crisis
IAIS steps up supervisory coordination efforts

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