Prudential Regulation and Risk Management in Insurance Training Programs

Context: The insurance sector is a major and increasingly prominent sector of the financial services industry. The sector is a major contributor to risk management and financial stability in an increasingly liberal and international environment.

There is an accepted need for insurance regulators to improve the level and quality of insurance regulation and corporate governance standards and their implementation, in both industry and regulatory agencies. Recent FSAP reviews suggest insurance supervision in both developing and developed countries is a weak link in financial services regulation and is a source of increasing financial vulnerability.

Approach: The MRC approach is interactive, takes a risk management view and involves dialog between the major stakeholders: regulators, industry, multilateral agencies and other experts. Expertise is contributed from the Program's industry sponsors and the public sector supporters.

A 'principles and examples' style develops practical awareness of international best practices, importantly those developed by the IAIS, while recognising specific conditions in particular countries. Training Programs will be adapted to reflect ongoing input from regulatory agencies, ensuring they remain topical and relevant.

Insurance Training Programs:

• Duration: Programs are scheduled to last for approximately one week.
• Interactive: Attendees are expected to actively participate in case studies, workshops and discussions, and to complete specified work prior to the Program.
• Materials: On completing the Training Program attendees will receive a CD of materials, including supplementary readings.
• Detailed Programs: Will be developed following input from regulators, other interested parties, and reflect ongoing developments impacting the regulatory environment.

Endorsement: Based on their experience, regulators from the region endorsed the MRC model for developing regulatory capacity at the MRC Symposium, held in Singapore, in November 2003.

Further Information and Feedback: For further information on the Training Programs please contact Mrs Shayne Walsh at the Australian APEC Study Centre, email shayne@apec.org.au, Fax (+61 3) 9903-8813.

Training Program Outline

Areas addressed will include:

• The Need for Regulation:

• Risks and Major Issues:

• Consumers and Market Disclosure:

• Prudential Risks - Solvency and Capital Adequacy:

• Operational Risks:

• Corporate Governance:

• Regulatory Capacity:

• Implementation Issues:

Principles will be illustrated by examples and case studies.