Global

Details

  • Industry: Financial Services, Insurance
  • Type: Business and industry issue, Regulatory update
  • Date: 3/20/2014

Industry readiness: Survey results 

Industry readiness
In December 2013, KPMG member firms conducted an online survey of Internationally Active Insurance Groups (IAIGs) on the possible costs and potential benefits of global regulatory change, in particular the development by the IAIS of their ComFrame proposals.

Thirty IAIGs were invited to participate in the survey, with nearly two thirds responding.


Main findings include:


  • 89 percent awareness amongst IAIGs of the IAIS ComFrame developments but only 50 percent currently preparing
  • Good support for the development of a global prudential framework, only 35% support for a harmonized conduct requirements
  • Concerns regarding an un-level playing field and regulatory arbitrage to ComFrame being duplicative and burdensome for firms
  • Clear demand from IAIGs for consistent international accounting standards and better harmonization of legal frameworks
  • Strong support for ComFrame to be risk-based and address valuation standards – both at an accounting and actuarial level
  • Challenges in implementing a global framework centered on a lack of standard accounting practices for the valuation of assets and liabilities
  • Concern that a lack of political leadership to develop a global framework could seriously hamper international efforts
  • 61 percent expect of those surveyed expect that ComFrame would result in additional costs to systems changes and capital and unlikely to result in any expense reductions
  • Most IAIGs surveyed were unable to estimate their current regulatory resourcing costs
  • Support for a single group-wide supervisor in both Europe and the US markets

Survey results chart

 

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Evolving Insurance Regulation 2014

Evolving Insurance Regulation 2014
The 2014 Evolving Insurance Regulation report examines current and future regulatory changes impacting the insurers both from a global and regional perspective.

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