As insurance regulators increasingly work together to address regulatory issues at an international level, a global federation formed last year says it has made progress in its efforts to advocate on behalf of the industry with respect to these cross-border issues.
The Global Federation of Insurance Associations (GFIA), which was established in October 2012, published its first annual report on Wednesday, outlining the work it has accomplished so far.
“Financial services regulation is now firmly on the global agenda, with the G20 taking the lead. It is therefore important that the world’s insurers can speak with one strong, representative voice,” said Frank Swedlove, chairman of the GFIA and president of the Canadian Life and Health Insurance Association (CLHIA). ” In its first year, the GFIA has already proved itself to be a welcome and trusted counterpart and single point of contact for global policymakers and regulators.”
“It has been a busy year for us setting up the secretariat, but I am pleased that we are fully operational and can meet the needs of our members and respond to the demands of regulators,” added Michaela Koller, secretary of the GFIA and director general of Insurance Europe.
The GFIA was founded by 32 life and health, property and casualty, and reinsurance associations, and since then, three more associations have joined the federation. It now represents 87% of all the world’s insurance premiums.
Since its formation, the GFIA has set up 10 working groups, and has produced detailed position papers and letters on topics such as systemic risk, corporate governance, market conduct, anti-money laundering, trade issues and financial inclusion.
“We can be proud that we have already achieved a great deal in terms of building positions, establishing contacts and launching our advocacy work,” said Swedlove.
One key item on the GFIA’s agenda is its active involvement in the consultations pertaining to the International Association of Insurance Supervisors’ (IAIS) initiative to develop a common framework for the supervision of international insurance groups – an undertaking known as ComFrame. With the first phase of this initiative poised to wrap up later this year, the GFIA is focused on advocating for an open and transparent consultation process, a principles-based – as opposed to a rules-based – regime, and a framework that respects the confidentiality of individual companies, among other goals.
“The international regulation of insurance is at a key point in its evolution,” GFIA says in its annual report. “For the first time, international capital standards are being discussed and the ComFrame framework for internationally active companies is taking shape. The industry must be ready to speak clearly and responsibly on these issues.”