The global mutual and cooperative insurance community, represented by the International Cooperative and Mutual Insurance Federation (ICMIF), and the European mutual and cooperatives sector, represented by the Association of Mutual Insurers and Insurance Cooperatives in Europe (AMICE), welcomes the application paper issued yesterday by the International Association of Insurance Supervisors (IAIS) on the regulation and supervision of mutuals, cooperatives and community-based organisations (MCCOs). The paper represents an important step forward in recognising that different types of insurers need to be regulated in a way which is appropriate to their structure and their relationship with their policyholders. ICMIF encourages supervisors around the world to adopt the IAIS proposals as their core standard for the supervision of mutual and cooperative insurers.
Shaun Tarbuck, Chief Executive of ICMIF, said:
“This issues paper is a strong recognition that MCCOs are an important business model for improving access to insurance. We support the paper’s discussion on relevant proportionality in all national jurisdictions, and we will be supporting ICMIF members in all countries to ensure this is upheld.”
In the paper, the IAIS identifies that mutuals are a significant factor of economic and social development. It further recognises that cooperatives are sustainable and successful enterprises. The IAIS recommends that supervisors, regulators and policymakers consider the guidance for the proportionate application of the insurance core principles to mutual and cooperative insurers, and to identify and remove unnecessary barriers in disproportionate regulation and supervision, while at the same time ensuring the appropriate level of policyholder protection.
Sarah Goddard, Secretary General of AMICE, said:
“In this paper, the IAIS recognises that mutual and cooperative insurers are a fundamental element of all insurance markets, irrespective of their size. We particularly welcome that the global supervisory community identifies that proportionality is the key for proper insurance supervision and regulation in all countries.”
Download the IAIS Application Paper here.