IAIS has reported observance levels from a self- assessment on three Insurance Core Principles (ICPs) and the recommendations of the expert team for enhancing observance and understanding of the ICPs. The relevant ICPS concerned supervisory review and reporting (ICP9), preventative and corrective measures (ICP10) and enforcement (ICP11). Some of the most common challenges to observance included:

  • legislative frameworks not providing the powers needed to meet the requirements of the standards;
  • expectations being set out in supervisory guidelines only, resulting in less effective enforcement and corrective actions;
  • directors and senior management only being made aware of supervisory concerns when the supervisor considered appropriate actions had not been taken;
  • supervisory frameworks not including a comprehensive supervisory plan;
  • supervisory concerns not being resolved in a timely fashion, or to the satisfaction of the supervisor; and
  • institutional arrangements in some jurisdictions impeding the ability of some supervisory authorities to achieve their objectives under ICP 10 and ICP 11.

(Source: IAIS Reports on ICP Self-Assessment)