Insurance industry worldwide standards are increasing uncertainty

Insurance industry standards and technology

Fitch Ratings has warned that new plans by the IAIS could make issues of certainty worse. According to a statement from Fitch Ratings, the intentions of the International Association of Insurance Supervisors (IAIS) to come up with a global coverage capital standard based on risk will only bring about another layer of uncertainty for the insurance industry. The goal of the IAIS is to have the standard created and fully in place by the year 2019. This was pointed out by Fitch Ratings in the statement that they recently issued,…

Read More

IAIS introduces new methodology to identify insurance companies that are too big to fail

Insurance news

New criteria expected to single out insurance companies on their economic importance The International Association of Insurance Supervisors (IAIS), an organization that represents the world’s insurance regulators, has introduced new criteria for identifying insurance companies that can be considered “too big to fail.” This term became popular during the economic crisis in the U.S., where companies like the American International Group (AIG) were thrust into limelight for the part they played in the disaster. Companies that are considered too big to fail are considered vital to the economic stability of…

Read More

Too big to fail insurance corporations should be governered by different rules than the banking industry

The term “too big to fail” rose to prominence in the wake of 2008’s economic recession. Much like the effects of the recession, the phrase has lingered and has come to define certain aspects of the business world. Too big to fail is a categorization often attributed to massive corporations that have complex and expansive global business operations and deep ties with financial institutions. If these businesses were to fail, there may be disastrous implications for the global economy that go well beyond the problems born during the 2008 recession.…

Read More

Global insurance industry may be in for change as regulators come together to draft new rules

In the wake of major natural disasters and allegations of corruption, the world’s insurance industry is set for change. Insurance regulators from several nations have begun drafting new rules to present to political leaders in time for the 2012 G20 summit .These new rules are being tailored to ensure that the actions that spurred the 2008 economic recession cannot be repeated in the future. Both the International Association of Insurance Supervisors (IAIS) and the Financial Stability Board (FSB) are playing a major role in drafting the new rules. Overall, the…

Read More