A consultation paper has been issued today by the Commission which proposes some significant updates to insurer regulation. The paper proposes a new solvency framework and introduces new rules in relation to corporate governance and public disclosure which have all been developed in line with emerging international standards.
Speaking about the launch of the consultation, Jeremy Quick, the Commission’s Director of Banking and Insurance Supervision said “the Commission is committed to meeting international standards to ensure the continuing credibility of Guernsey as an international financial services centre. We acknowledge that it is important that the implementation of those standards takes account of the economic wellbeing of the industry and the Bailiwick.”
The key aims of the proposals in the consultation paper are to:
· meet international standards;
· provide international comparable levels of protection to retail customers of insurance products;
· enhance the clarity and transparency of the regulatory requirements; and
· further develop the Commission’s risk based approach to supervision.
The Commission has worked closely with industry representatives in developing these proposals and wishes to acknowledge the contribution of the Guernsey International Insurance Association (GIIA). Jeremy Quick added “this is an example of the Commission and industry working positively together to develop a workable solution which meets the requirements of international standards”.
International standards for insurance supervisors, which are set by the International Association of Insurance Supervisors (IAIS), were substantially revised and updated in October 2011. The Commission’s proposals contained within the consultation paper are intended to meet the evolving standards in a proportionate manner that reflects the nature of the insurance industry in the Bailiwick.
A feedback statement covering the substantive issues raised by respondents will be issued by the Commission following the close of the consultation period on 16 December 2013.
Please click here for the Media Release.