International Association of Insurance Supervisors (IAIS)
IAIS - International Association of Insurance Supervisors
Established in 1994, the International Association of Insurance Supervisors associates the supervisors and regulators from nearly 140 countries and international organizations, including the European Insurance and Occupational Pension Authority, as well as World Bank and International Monetary Fund.
IAIS’ mission is to promote effective and globally consistent supervision of the insurance industry in order to develop and maintain fair, safe and stable insurance markets for the benefit and protection of policyholders and to contribute to global financial stability.
Activities undertaken in furtherance of its mission can be divided into three categories:
Establishing standards, drawing up and publishing the principles and recommendations in key areas concerning the supervision and regulation of the insurance sector. Insurance Core Principles (ICP), developed by the IAIS, define basic requirements for the insurance activities and the supervision of insurance undertakings. The Insurance Core Principles constitute also a basis for the assessment of the legislation, systems and supervisory practices in individual jurisdictions.
The Association actively promotes the implementation of its supervisory material. Maintaining close cooperation with international organizations, regional groups and supervisors, it supports training seminars, conferences and addresses financial inclusion. Additionally the IAIS conducts assessments and peer reviews of Members’ observance of supervisory material.
The objective of these activities is to create a stable, reliable and efficient insurance sector, which protects interests of the insured, beneficiaries and entitled to the insurance contract. Association plays a significant role in financial stability issues, including developing a methodology for the identification of global systemically important insurers (G-SII) and policy measures to address systemic risk in G-SIIs as well as establishing Common Framework for the Supervision of Internationally Active Insurance Groups (Comframe). Consequently, it is developing a risk-based capital standard for G-SIIs and a global group-wide capital standard applicable to both G-SIIs and IAIGs as well.
Under the direction of its Members and led by the Executive Committee, the IAIS conducts activities through a committee system.
The Executive Committee, that represents the IAIS externally and takes all decisions regarding the tasks aiming at executing the strategy. To achieve its mandate and objectives the Committee established five Committees under the By-laws:
Technical Committee, whose task is to develop principles and standards for effective supervision;
Implementation Committee, whose main task is to support the developing markets in setting proper rules on the regulation and supervision of insurance, as well as to develop training materials and organize trainings;
Financial Stability Committee, whose main task is to develop strategies to promote financial stability and coordination of the IAIS with Financial Stability Board – FSB and the G20;
Audit and risk, whose task is to monitor that Association’ activities achieve their objectives and are compliant with applicable procedures and resolutions;
Budget Committee, whose task is to conduct affairs related to the financing of the IAIS.
Members of the IAIS take important decisions for the Association at the general meeting. The task of the General Assembly is to decide on directions of future work of the Association, the changes to the by-laws, and the election of the members of the Executive Committee and adoption of documents (standards, rules, recommendations) prepared by subcommittees and working groups of the IAIS.
Due to the global nature the IAIS performs its tasks based on the geographical division – 9 regions. The KNF belongs to the region of Central and Eastern Europe and Transcaucasia (CEET).
The KNF – Polish Financial Supervisory Authority is a member of the Executive Committee, Financial Stability Committee, Technical Committee and its Insurance Groups Working Group as well as the Implementation Committee, within which the KNF serves as the regional coordinator for the mentioned above CEET region. The tasks of the coordinator include inter alia: identifying regional training needs and technical assistance objectives, coordinating and undertaking training activities and developing a strategy for the implementation of the objectives of the training within the region.