On 11 March 2013, the International Association of Insurance Supervisors (‘IAIS’) announced that Ireland had become the 34th signatory of its international information exchange agreement. The agreement takes the form of a Multilateral Memorandum of Understanding (‘MMoU’) signed by insurance supervisors. The MMoU is viewed as an important regulatory tool as it provides a global framework for cooperation and information exchange between insurance supervisors.
On 11 February 2013 the International Association of Insurance Supervisors (‘IAIS’), together with the Basel Committee on Banking Supervision and the International Organization of Securities Commissions, issued a consultative report on ‘Mortgage insurance: market structure, underwriting cycle and policy implications’. The report found that, in the aftermath of the financial crisis, mortgage insurance was subject to significant stress due to extraordinary levels of claims occurring. The report examines the interaction of mortgage insurers with mortgage originators and underwriters, and includes recommendations for policymakers and supervisors aimed at reducing the likelihood of mortgage insurance stress and failure. Comments on the consultative report are invited up to 30 April 2013.
The IAIS has also announced the launch of the following Self-Assessment and Peer Reviews (‘SAPR’):
- SAPR on observance and understanding of the Insurance Core Principles (ICP) related to licensing, suitability of persons, corporate governance, and risk management and internal controls (ICPs 4, 5, 7 and 8)
- SAPR on Regulation and Supervision supporting Inclusive Insurance Markets