Public consultation of Application Paper on supervising diversity, equity and inclusion – the governance, risk management and culture perspective
The IAIS has now published its Application Paper on supervising diversity, equity and inclusion (DEI) – the governance, risk management and culture perspective. DEI is one of the IAIS’ key strategic themes in recognition that advancing DEI within insurers’ organisations and in the way they operate their businesses supports better prudential and consumer outcomes.
The application paper explains why DEI within an insurer is relevant to corporate governance (ICP 7), risk management (ICP 8) and corporate culture. It guides supervisors on relevant matters to look at when examining the state of an insurer’s DEI strategies and possible warning signs that an insurer might need to enhance its DEI efforts. It then proposes potential actions that a supervisor can take, either industry-wide or insurer-specific, to address potential and realised DEI issues ranging from the use of soft powers to more formal interventions.
Comments on the application paper were sought between March and June 2024. The comments received and the IAIS’ responses are available in the resolution of comments document at the bottom of the page. The feedback was overall supportive of the IAIS’ work on DEI and largely supportive of the approach taken within the draft application paper. Key themes of the feedback are summarised, together with the IAIS responding position, on the first two pages of the resolution of comments.
The paper will be discussed as part of the DEI in insurance panel at the IAIS Annual Conference 5-6 December 2024 in Cape Town, South Africa. A recording of the panel will be available on the IAIS website the following week.
Earlier this year, the IAIS has also consulted on an Application Paper on how to achieve fair treatment for diverse consumers. The IAIS is in the process of reviewing comments received on that consultation and anticipates publishing the final paper in mid-2025.