Proportionate regulation

This call that took place on 24 May 2018, dealt with supervisory ratios in insurance supervision, particularly in relation to client value and product cost structures. A record number of 89 supervisors from 36 countries participated on this call.

When licensing and supervising insurance products, supervisors need to make judgments on the soundness, sustainability and ethics of the proposed product. This is particularly the case when products are designed as part of an initiative for increased financial inclusion as the underserved segments often contain economically and socially vulnerable consumers with low familiarity with insurance products. This call explored some of the approaches in evaluating this, the ratios involved (e.g. loss ration, claims ratio, renewal ratio and others) and a number of concrete examples of what considerations come into play. 

We heard an expert presentation by   Clémence  Tatin-Jaleran  and Andrea Camargo, and were joined by Michael Sicsic of the UK's Financial Conduct Authority (FCA), who shared the FCA's experience with the set of key reporting ratios they are piloting. Annibal Vasconcellos of the Brazilian supervisor SUSEP also shared his experiences with the monitoring of ratios. 

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