How Are the Iais Principles Met Within the Mauritian Legislation on Insurance?
How are the IAIS principles met within the Mauritian legislation on Insurance?
Established in 1994, the International Association of Insurance Supervisors (IAIS) represents insurance regulators and supervisors of some 190 jurisdictions in nearly 140 countries. The agency’s Insurance Core Principles (ICPs) provide a globally accepted framework for the supervision of the insurance sector. The ICPs apply to the supervision of all insurers whether private or government-controlled insurers that compete with private enterprises. In the case of Mauritius, there is the Insurance Act 2005 which is executed by the Financial Services Commission (FSC) with the primary aim of regulating the insurance business in the island. The Mauritian insurance industry has grown with assets amounting to Rs 95.9 bn for 21 insurance companies recording an increase of 8%. Its total gross premium has risen by 9% from Rs 17.5 bn in 2010 to Rs 19.2 bn in 2011. Forecasts from Statistics Mauritius and FSC show that the insurance industry contributes to 3.1% of the national GDP. In what ways does the Insurance Act 2005 (IA 2005) comply with the ICPs formulated by the IAIS?
The FSC’s strategic plan is engineered towards consolidating the legal and regulatory frameworks, reinforcing the supervisory and enforcement actions, financial stability, international relations, consumer and investor protection and delivering a higher level of performance entailing to the maintenance of its competitive advantage. In its reinforcement of the supervisory and enforcement actions, the FSC reviewed the inspection procedures and manuals for each sector by aligning the supervisory approaches with international best practices which involve amongst others the IAIS- ICPs to ensure financial soundness of regulated institutions. The ICP 1 states that the authority responsible for insurance supervision and the objectives for same are to be clearly defined. Section 3 of the IA 2005 clearly makes provision for the ICP 1 by
Established in 1994, the International Association of Insurance Supervisors (IAIS) represents insurance regulators and supervisors of some 190 jurisdictions in nearly 140 countries. The agency’s Insurance Core Principles (ICPs) provide a globally accepted framework for the supervision of the insurance sector. The ICPs apply to the supervision of all insurers whether private or government-controlled insurers that compete with private enterprises. In the case of Mauritius, there is the Insurance Act 2005 which is executed by the Financial Services Commission (FSC) with the primary aim of regulating the insurance business in the island. The Mauritian insurance industry has grown with assets amounting to Rs 95.9 bn for 21 insurance companies recording an increase of 8%. Its total gross premium has risen by 9% from Rs 17.5 bn in 2010 to Rs 19.2 bn in 2011. Forecasts from Statistics Mauritius and FSC show that the insurance industry contributes to 3.1% of the national GDP. In what ways does the Insurance Act 2005 (IA 2005) comply with the ICPs formulated by the IAIS?
The FSC’s strategic plan is engineered towards consolidating the legal and regulatory frameworks, reinforcing the supervisory and enforcement actions, financial stability, international relations, consumer and investor protection and delivering a higher level of performance entailing to the maintenance of its competitive advantage. In its reinforcement of the supervisory and enforcement actions, the FSC reviewed the inspection procedures and manuals for each sector by aligning the supervisory approaches with international best practices which involve amongst others the IAIS- ICPs to ensure financial soundness of regulated institutions. The ICP 1 states that the authority responsible for insurance supervision and the objectives for same are to be clearly defined. Section 3 of the IA 2005 clearly makes provision for the ICP 1 by