The International Association of Insurance Supervisors (IAIS) has published an application paper on approaches to supervising the conduct of intermediaries.
The IAIS is a voluntary membership organisation of insurance supervisors and regulators from 200 jurisdictions. Its paper sets out ideas on the approaches firms should consider when developing or revising a regime for supervising its intermediaries.
The paper draws on examples and responses from a survey of more than 60 of its members globally and notes that the nature and risks of a chain of intermediation is influenced by local traditions and developments in each intermediation market. The paper considers approaches to, for example, organisational processes, eligibility requirements, corrective and preventative responses/measures, off-site and on-site monitoring, inspections, and the use of supervisory tools and management information. The paper notes, in relation to the use of supervisory tools and management information, that supervisors will need to adapt their approaches to supervision to reflect the emergence of new distribution channels (as a result of emerging technology) and the changing expectations of customers and insurers.