International insurance body publishes updated Core Principles

IAIS is a global standard-setting body which exists to promote consistent regulation in the insurance industry. Its Insurance Core Principles, Standards, Guidance and Methodology (ICPs) provide a "globally accepted framework" used in assessing the effectiveness of supervisory regimes in the insurance sector, the body said.

The ICPs are used by the World Bank and International Monetary Fund to assess international regulatory regimes under the Financial Sector Assessment Programme (FSAP).

IAIS Executive Committee chairman Peter Braumüller said that the organisation had achieved a "major objective" in reviewing its ICPs.

"The new set of ICPs is based on developments in insurance markets and supervision since the last revision in 2003. The revised ICPs, which include an entirely new principle guiding future work in the area of macroprudential surveillance, continue to represent a solid basis for the further strengthening of insurance supervision globally," he said.

The document outlines a hierarchy of supervisory material. Its statements are the highest level in that hierarchy and include the "essential elements" that an insurance supervisory regime needs to provide an adequate level of consumer protection. It then sets out standards linked to specific statements, which set out what a supervisory authority has to do to meet that statement.

Guidance is also included, which provides detail on how to implement the statements and standards.

IAIS said the material would be republished in an online IT tool which would provide convenient and flexible access to the material shortly.