Water cooler and triangular chairs

Approaches to supervising the conduct of intermediaries, IAIS paper

21 November 2016. Published by Jonathan Charwat, Senior Associate

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.

We are hosting a seminar about insurance distribution on Wednesday which, amongst other things, will demonstrate 'RegTech' solutions for monitoring and managing intermediaries, including appointed representatives and delegated underwriting arrangements.

Our seminar will also consider the increasing supervisory focus on intermediaries and the implications of the FCA's recent thematic review which identified significant shortcomings in the control and oversight of appointed representatives by principal firms.

If you would like to attend on Wednesday at 9 am, please get in touch with seminars@rpc.co.uk.