The UK’s resource and leadership
Together, the Bank of England, its PRA subsidiary and the FCA have a sheer scale of resource and influence that is market- leading. The ability to draw on the expertise of specialists with detailed technical knowledge and its thought leadership for other regulators means that the UK authorities are highly influential in leading the direction of travel of regulation, both within the rest of Europe and elsewhere in the world.
Clyde & Co says: Shame England’s football team can’t do the same.
China’s laissez-faire approach to off-shore reinsurance
The China Insurance Regulatory Committee has in place very light touch regulation regarding how and where primary insurers from the People’s Republic of China cede their reinsurance to offshore entities. There is no prescriptive “marking down” of the value of reinsurance recoverables for minimum/regulatory capital purposes, nor is there yet a full-blown requirement for foreign reinsurers to hold assets in China, in contrast to the requirements in some other jurisdictions, such as Australia.
Clyde & Co says: China’s insurance regulator could probably teach its football team a thing or two.
Malta’s proactive industry support
The Malta Financial Services Authority has displayed welcoming and proactive support for the insurance industry. Examples of this include designing PCC legislation specifically to fix perceived deficiencies of the rules in other jurisdictions and its recent introduction of a regime geared towards making securitization and the issuance of ILSs more certain and easier to achieve.
Clyde & Co says: World Cup minnow learning from the big boys.
France’s pragmatic approach
The French insurance regulator, the ACPR, often agrees to adopt pragmatic solutions when regulated entities are faced with unclear or often conflicting legislation or regulation. This approach has proven useful in the face of a constantly changing legal, regulatory and tax environment, coupled to unpredictable case law.
Clyde & Co says: Will Les Bleus adopt a similar philosophy on the pitch?
Singapore’s business friendly attitude
The Monetary Authority of Singapore continues to foster a pro-business regulatory environment to accelerate the growth of the local industry. The development of Singapore’s captive insurance market is just one example of the willingness of the regulator to embrace policies that are attractive to business. Singapore has achieved its position as the leading domicile in the region by implementing a light touch regulatory environment conducive to the establishment of captive insurers, offering an attractive tax incentive scheme which provides captives with exemptions from tax on a range of income streams for up to ten years.
Clyde & Co says: Cutting edge tactics – the Jose Mourinho of insurance regulators.
Brazil’s willingness to open the reinsurance market
For almost seventy years, the Brazilian reinsurance market was solely operated by government-owned Brazilian Reinsurance Institute (IRB). In 2007 this scenario started to change with new rules that opened the market to other companies. Although the IRB and other local reinsurers were still granted a significant reserve of 60% of the operations this was reduced to 40% in 2010 and will likely decrease further in the future.
Clyde & Co says: Success in insurance industry certain to follow glory on the pitch.
Australia’s insurance regulator’s safe pair of hands
During the turbulent times of the global financial crisis in 2007 and since that period, the Australian Prudential Regulatory Authority (APRA) has guided the Australian financial sector and the insurance industry through turbulent waters, leaving the sector virtually unscathed and in a strong position. A booming commodities market obviously plays an identifiable role in the continued success of the Australian economy but without APRA’s vision and adaptability, the prudential regulation of the Australian financial services sector would not be in the world leading position it is in today.
Clyde & Co says: Resilient and adaptable in tough situations, APRA’s hands are as solid and dependable as those of Gordon Banks.
The Middle East’s commitment to best practice
The Dubai International Financial Centre and Qatar Financial centre were set up from scratch, so the regulating bodies have had the ability to cherry-pick from the best of the existing financial centre legislation. This, combined with on-going and continuous regulatory overhaul, makes a compelling case for setting up in these bespoke Middle East financial centres to obtain access to the growth markets in this developing region.
Clyde & Co says: Quality from top to bottom – reminiscent of the all-conquering Spanish XI.