49 leading figures from insurance and reinsurance call for more effective regulation and supervision
The CEOs of the world’s largest insurance and reinsurance companies have delivered a joint letter to the finance ministers of the G20 governments, spelling out their hopes for the future of the international insurance industry.
The letter was orchestrated by the Geneva Association, the international insurance think-tank, and has been released ahead of the G20 meeting in London on April 2. It outlines the key aspects of the future shape of an effective regulatory framework, which “needs to reflect the differences between insurance and banking”.
READ the letter and list of signatories in the PDF file attached on the right of this page.
The CEOs call for any future sector regulation to take into account the specific characteristics of the insurance business model, avoid pro-cyclical effects and strike an appropriate balance between financial stability, consumer protection and a level competitive playing field.
The five key sections of the letter are:
1. Insurance is vital to the economy; its business model has proven resilient.
2. Maintaining financial stability is of utmost importance.
3. Regulatory frameworks need to reflect the differences between insurers and banks.
4. The importance of strong corporate risk management has been clearly demonstrated.
5. Accounting systems need to be adapted in times of extreme liquidity.
The letter is signed by the CEOs of 49 companies, including Allianz, AXA, Munich Re, Prudential, Swiss Re and Tokio Marine.
Mark Tucker, chairman of the Geneva Association’s Market Stability Working Group and group CEO of Prudential Plc, said: “The London summit comes at a critical time for the global economy where the need for bold and coordinated action to restore stability and consumer confidence is as great as ever.”
He added: “The insurance and reinsurance industry has the strongest possible interest in seeing this happen, as it does in securing an efficient and effective financial system. It is for this reason that we have written to the finance ministers of those countries attending the summit setting out the industry’s views.”
Patrick Liedtke, secretary general and managing director of the Geneva Association, said: “As the leading think tank of the global insurance industry, the Geneva Association is committed to substantiating insurance-related debates and decision-making processes. We aim to contribute to well-functioning insurance markets which create sustainable value for all stakeholders. By promoting a proper understanding of the insurance industry’s specific characteristics we hope to enhance the quality of the decisions that will be taken in the next few months; decisions that will determine the framework for insurance and financial services in general for many years to come.”