Next Steps on the Road to Global Solvency Regulation for Insurers
Positioning for a new financial landscape
As institutions begin to emerge from the financial crisis and global economic downturn, their thoughts are turning towards preparations for the recovery. They are re-configuring business models to suit the new financial landscape, re-aligning their workforce to meet new levels of demand, and re-building customer relationships that have been unsettled during the crisis. There is also urgency in these efforts, as institutions recognize that these preparations must be complete before the recovery arrives if they are to make the most of the opportunities to come.
This is no less true in the supervisory area where global insurance regulators are beginning to come together in an effort to map out a uniform way to oversee insurance companies on a multi-jurisdictional level. Indeed, perhaps at no other time in recent history, has the drive to modernize regulatory oversight been so great.
These efforts are especially active in the European Union, with the emergence of Solvency II; the United States, where the National Association of Insurance Commissioners is working on its groundbreaking Solvency Modernization Initiative; and at the International Association of Insurance Supervisors, which is working to develop its ComFrame project, which seeks to develop a common framework for the supervision of internationally active insurance groups.
As the regulatory landscape shifts, insurers and reinsurers should take the opportunity to remain alert and aware as efforts to modernize and streamline the industry unfolds. This Deloitte “point of view” examines the discussion and outlines the current and proposed initiatives between international insurance regulatory authorities around the world.
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