Insurance CEOs call for effective regulation

A think tank together with CEO’s of the world’s largest insurance and reinsurance companies has co-signed a letter to finance ministers of the G-20 governments calling for more effective and efficient regulatory and supervisory framework for the global insurance industry.

Mark Tucker, chairman of The Geneva Associations Market Stability Working Group and Group CEO of Prudential plc said: “The London Summit comes at critical time for the global economy where the need for bold and coordinated action to restore stability an consumer confidence is as great as ever.”

Tucker 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.”

The key elements of the letter highlighted that:

• Insurance is vital to the economy and that its business model has proven resilient
• Maintaining financial stability is of the utmost importance
• Regulatory frameworks need to reflect the differences between insurers and banks
• The importance of strong corporate risk management has been clearly demonstrated
• And that accounting systems need to be adapted in times of extreme illiquidity