FSI and IAIS publish joint Insights note on insurance supervisory resources

Insurance supervisory resources are fundamental to enable supervisors to fulfil their mandates effectively and to respond to a changing supervisory and insurance market landscape as set out in Insurance Core Principle 2 (Supervisor).

In a joint note entitled “The next generation of insurance supervision – resourcing the future”, staff from the IAIS and BIS’s Financial Stability Institute (FSI) examine how supervisors identify and allocate human and financial resources, the sufficiency of these resources in meeting current and future demands, and the strategies to allocate them efficiently. The analysis is informed by a survey of 23 insurance supervisory authorities across all IAIS regions, with varying supervisory mandates and institutional set ups. Insights from the survey were further complemented with a desktop review of assessment reports.

Key findings highlight the importance of having adequate supervisory resources and that optimising the use of available resources is critical to enabling insurance supervisors to fulfil their supervisory mandates. The paper also notes that while financial resources may not currently be the most pressing challenge in certain jurisdictions, supervisors should anticipate future resource-related challenges, manage resources cost-efficiently, and consider the resource implications of expanding supervisory mandates.

The note is available on the IAIS website under Other Supporting Material.

Read more about the IAIS’ cooperation with implementation partners here.