Supervisors provide new outline for encouraging cooperation among regulators on a local level.
The most recent international insurance news in the spotlight includes multinational supervisors in the industry, which have updated their global framework draft in order to help to encourage local regulator cooperation, as they deal with the struggles of regulating insurers with a great deal of business outside of their country of origin.
The ComFrame – the name of the global framework – has been under construction for two years.
The group responsible for the development of this framework is called the International Association of Insurance Supervisors (IAIS). It has now making international insurance news as it has reached the point where its designers are requesting the comments of insurers and national supervisors, in order to further fine tune the rules. This opportunity will be available until August 31.
The IAIS is affiliated with the Basel, Switzerland, Bank for International Settlements.
Once the framework has been established, the hope is that it will act as a reference that can be used by local supervisors so that they can better oversee the activity of insurers on a global scale and will help to keep their efficacy high. It is also meant to improve the supervisory cooperation as well as encourage the worldwide convergence of various measures and approaches by regulators.
This international insurance news is important as a growing number of insurers do multinational business.
Many large insurers are now doing business outside of their own home countries, frequently through subsidiaries that are locally incorporated. By using this framework, a supervisor within a host country will find it easier to cooperate with the regulator of an insurer’s home country. This will make for a much smoother and effective process, with greater understanding and improved cooperation.
According to the IAIS Executive committee chair, Peter Braumüller, in an international insurance news statement, “In our increasingly globally interconnected financial marketplace, supervisors need the ability to efficiently coordinate and cooperate across multiple borders.” As this industry is far from an exclusively local one, this should provide notable opportunities and much greater ease for regulation and operation.