A constructive dialogue took place between the official sector and the re/insurance industry on 9-10 July, when the Institute of International Finance (IIF) held an international colloquium on “Financial Stability and Insurance”. The meeting was hosted by Swiss Re and Zurich Insurance Group and attracted leaders from the insurance sector, regulators and industry bodies, who met at the Swiss Re Centre for Global Dialogue in Rüschlikon.
Discussion revolved around the International Association of Insurance Supervisors’ (IAIS) proposed methodology for assessing potential Globally Systemically Important Insurers (G-SIIs), which was released on 30 May for an initial consultation period. Further discussions were held on the IAIS’s preliminary thoughts regarding policy measures, the role of supervision for potential systemically risky activities, and the coordination of evolving policy approaches.
The debate regarding regulation in insurance is currently at a critical point. In addition to the proposed IAIS methodology, a new consultation period began in July for the Common Framework (ComFrame) for the Supervision of Internationally Active Insurance Groups. These reforms are part of the wave of new regulations which has swept over the financial sector since the 2008/2009 financial crisis revealed regulatory, corporate and macro-economic flaws. At first, many of the new initiatives focused on the banking sector. However, it soon became clear that the insurance industry, despite the resilience it had displayed throughout the crisis, would be swept up in the rearrangement of the global financial architecture.