FSI Update on Second High-Level Meet of Insurers in Dominican Republic
The Dominican Republic's regulatory authority for insurance hosted the Second High-level Meeting in Santo Domingo. The meeting was attended by representatives from various Latin American and Caribbean insurance supervisory authorities, the Association of Insurance Supervisors of Latin America (ASSAL), IAIS, and the Financial Stability Institute (FSI) of BIS.
Euclides Gutiérrez Félix, Superintendent and host, welcomed the meeting participants, emphasizing the need for continuous cooperation on both a regional and international level. In the opening remarks, the FSI Chairman Fernando Restoy focused on the changing risk landscape and the difficulties in capturing and quantifying emerging risks, while Jonathan Dixon of IAIS emphasized the vital contribution of insurance to economic growth and the crucial role of effective regulation and supervision in supporting it. Alicia Rosas of ASSAL described the ongoing modernization of regulatory frameworks in the region and the importance of best supervisory practice.
In the first session on insurance regulatory reforms, Mr Dixon presented the latest standard-setting and implementation activities of the IAIS, while supervisors in the region reported on various regulatory reforms. The session also focused on regulatory research based on an analysis of countries' risk-based capital frameworks. Emerging risks and new developments in the insurance market were presented in the second session. Emerging risks that supervisors need to be aware of were described, along with the challenges in capturing them. The third session described the concept of proportionality and the rationale for applying it to regulation. Various aspects were presented, ranging from sophisticated prudential frameworks such as the Solvency II in EU to market conduct regulation related to financial inclusion. The last session focused on cyber-risk management and insurance. Examples were given of cyber-threats, while outlining the challenges in identifying, quantifying and managing them.
At the meeting, it was agreed that there are many challenges that supervisors need to tackle, concluding that an exchange of experiences between supervisors and international organizations is a valuable tool in meeting these challenges. The meeting was attended by 48 participants and speakers from 28 institutions and 24 countries. The represented countries from the region were Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, the Dominican Republic, El Salvador, Guatemala, Honduras, the Netherlands Antilles, Nicaragua, Panama, Paraguay, Peru, Portugal, Spain, and Uruguay.
Related Link: Press Release
Keywords: International, Insurance, Solvency II, Insurance Supervision, Regulatory Reform, Dominic Republic, BIS, FSI
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