Regulatory landscape

Insurance Regulation

One of the main tasks of the Insurance Committee is to monitor and analyse structural developments in the insurance industry, its interface with other segments of financial services and trends in insurance-related policies in Member countries. This includes a regular review of structural changes and policy developments in the insurance sector of Member countries as well as the collection, harmonisation and dissemination of statistical and regulatory data on insurance. It provides the basis for exchanges of views on policy issues in the Insurance Committee. The Paratte Report/Comparative Tables on Insurance Regulation and Supervision in OECD countries.

The monitoring process also includes topical analysis focusing on specific aspects of insurance: accounting issues, compulsory insurance, policyholder protection funds, financial convergence ...

See also the following documents / publications :

• Insurance Regulation and Supervision in Asia
• Comparative Tables on Insurance Regulation and Supervision in OECD Countries (Paratte Report)
• Insurance Regulation in OECD Countries, Asian Economies and CEEC and NIS Countries
• Glossary of Insurance Policy Terms

Financial Solvency of Insurance Companies

The insurance sector is gradually moving from a system of heavy direct official control over insurance business to a more deregulated environment, which also requires improved risk control by private companies and more sophisticated official oversight. There is a growing perception among insurance supervisors that techniques need to be improved. The financial difficulties of major insurance companies in a number of countries have further heightened awareness of the need to devise and implement more effective schemes to supervise the insurance sector. Since insurance companies are major investors, their financial soundness has clear implications for the stability of securities markets. In addition, the need to protect the insured remains an on going concern for regulators.

The Group of governmental experts on insurance solvency examines closely solvency regulations in the OECD countries. It also discusses major recent policy issues in this field, as, for example:

• use of derivatives by insurance companies
• regulation of reinsurance activities
• winding up rules
• actuaries
• segmentation issues
• equalisation reserves
• early warning systems
• embedded values
• financial reinsurance
• rating agencies
• claim process
• accounting standards.

The Working Party also drafted a new OECD Recommendation related to disclosure of information in the reinsurance field which was approved by the Council in 1998. Currently, the Solvency Group is revising its November 1995 publication on "Insurance Solvency Supervision in the OECD Countries".

See also the following documentation:

• Assessing the Financial Health of Insurance Undertakings to Protect the Insured from the Risks to which these Firms are Exposed: Solvency Rules, by Jean-Louis Bellando

and publication:

• Insurance Solvency Supervision: OECD Country Profiles (2002)

Reinsurance

The Group of Governmental Experts on Insurance Solvency conducted a review of reinsurance regulations in Member countries (comparative review and detailed analyses of the situation in Belgium, France, Germany, Mexico, the Netherlands, Portugal, Sweden, Switzerland, the United Kingdom and the United States) and was the initiator of the 1998 Council Recommendation on the assessment of reinsurance companies.

See also the following documents:

• Recommendation of the Council on assessment of reinsurance companies
• Reinsurance regulation and supervision (with special focus on Mexico and emerging markets)
• Reinsurance issues for supervisors (with the example of Australia)
• Reinsurance in Thailand
• Development of reinsurance markets in the economies in transition