Pacific Insurance Regulators Develop Action Plans

Pacific Insurance Regulators Develop Action Plans at Sydney Meeting

SYDNEY, AUSTRALIA (27 March 2015) — Pacific Island insurance regulators have developed regional and individual country action plans to improve supervision of insurance and reinsurance regulatory regimes in the Pacific region.

Senior insurance regulators from eight Pacific Island nations developed the plans at a 5-day workshop led by the Asian Development Bank (ADB) here on Thematic Self-Assessment and Peer Review of Insurance Core Principles and Standards and with the support of the International Association of Insurance Supervisors (IAIS) – the international standard-setting body for insurance supervisors worldwide.

Insurance markets in the Pacific Islands are under-developed in large part due to insufficient market infrastructure, incomplete legal frameworks, and a lack of consumer protection regimes. Better regulatory provisions would also attract more capital which would lead to development of robust and inclusive insurance markets.

Lack of insurance means that Pacific Islanders shy away from starting or growing businesses or making long-term spending decisions because of the risks involved. This holds down incomes, productivity, and standards of living, undermining families and the economy as a whole.

Some of the key points of the plans include development of a guide for effective off-site and onsite inspection of reinsurance operations; submission of self-assessment questionnaires to the IAIS for peer review of reinsurance law and regulations, intermediaries and conduct of business; and better training opportunities.

During the workshop the Pacific Island regulators received training on the IAIS insurance core principles and market conduct, as well as on self-assessments and peer reviews. They were introduced to the concept of reinsurance, and provided with advice on how to promote access to insurance in small economies in a way that complies with international insurance standards.

“Enhancement of market underwriting capacity via reinsurance is important for the introduction of innovative insurance mechanisms. The Pacific Island insurance and reinsurance supervisors seem keen to develop local regulatory regimes that are in line with international standards,” said Arup Chatterjee, Principal Financial Sector Specialist with ADB. “Boosting consumer protection will also be key to developing the region’s insurance and reinsurance markets.”

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region.

ENDS

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