Publications
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Publications |
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A New Era in Marketplace Regulation in Canada published in Canadian Underwriter in November 2003. Re-Engineering Insurance Supervision jointly Published by the World Bank and the Inter-American Development Bank. The synopsis below is reprinted from the World Bank website at: http://www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pcont=details&eid=000094946_99031911111146 Summary Findings
Many countries are considering reforming regulation of their insurance systems and strengthening supervision. Savage's analysis is designed to help them choose the program of regulation and supervision that best fits their circumstance. He draws on experience in industrial countries that have examined the reasons financial institutions failed. He concludes that the old approach to supervising the financial sector -- covering a broad range of issues and devoting considerable energy to verifying data -- must be replaced by a more focused approach that targets insurer solvency by getting supervisors to pay attention to managements' performance and business strategy. Financial supervisors in jurisdictions that have updated their systems with this approach in mind now see their main task as gauging the financial risk or risk profile of each company and allocation most of their resources to the higher-risk situations. In doing so, their objective will be to understand a firm's business strategy, to assess the firm management's competence and appetite for risk, and to assess the firm's outlook and financial viability. Savage highlights the special role played in supervision by industry specialists such as the auditors and actuaries who support insurance companies. He identifies the priorities needed in the reform of insurance supervision and suggests steps needed for change -- and helpful ways for officials to organize. He discusses not only issues associated with the supervision of solvency and financial strength but ways to protect consumers. Corporate Governance in an Integrated Supervisory Agency The Issue of Supervisory Discretion Differences in Risk Based Supervision: Insurance and Banking by Lawrie Savage, Reprinted with permission of the Associates Forum, the newsletter of the Toronto International Leadership Centre for Financial Sector Supervision |
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To contact us: Lawrie Savage & Associates Inc.
Phone: (416) 916-0702
222 The Esplanade, Suite 201 |
