2022 IAIS Annual Conference
As the IAIS’ annual flagship event, the 2022 Annual Conference welcomed over 350 participants from 60 jurisdictions to Santiago de Chile on 10 – 11 November.
Panellists and participants engaged in rich conversations, exploring the changing landscape and the role of the insurance sector in meeting emerging economic and social challenges. Diversity, equity and inclusion; changing consumer preferences; macroeconomic risks; climate risk and the Insurance Capital Standard (ICS) were the focus on the main stage.
Several satellite meetings were also organised, including a joint IAIS-International Monetary Fund (IMF) workshop on risk-based solvency, an Access to Insurance Initiative (A2ii) lunch session on the conclusions from its innovation labs and a session showcasing women leaders in insurance and supervision and their experiences.
Panel discussions
Welcome remarks
Ministry of Finance, Chile
Mario Marcel, Finance Minister of Chile, set out the common regulatory and industry challenges faced by Chile and internationally to increase insurance penetration. He highlighted the need for effective regulation of the insurance sector and the role insurance must play in protecting communities against the economic consequences of natural catastrophes. The Minister also shared details about reforms underway to the pension sector in Chile.
Mario Marcel – Minister of Finance, Chile
Welcome remarks
Central Bank, Chile
Pablo García, Vice Governor, Central Bank of Chile, set the scene for the two-day conference, noting the increased risks to financial stability given the deteriorating global economic outlook. Learning from international experience, he noted the importance of Chile developing a risk-based supervisory and regulatory framework for the insurance sector, including the implementation of a robust legal framework.
Pablo Garcia – Vice Governor, Central Bank of Chile
Keynote
Cybersecurity: The good, the bad and the risky
Cyber-risk expert and CEO of Field Effect, Matt Holland joined us to share his perspective on this growing threat and the importance of effective cyber risk prevention and hygiene for cyber resilience. He noted the difficulties of attributing state sponsored cyber attacks as these actors are frequently able to avoid detection, posing difficulties for insurers that seek to limit their underwriting exposure by using this as an exclusion.
A focus on risk reduction is essential for addressing the evolving cyber risks.
Jonathan Dixon then moderated a compelling Q&A that answered the questions:
• What should supervisors and insurers look out for to manage and mitigate these risks?
• Does having more insurance coverage encourage hackers?
• Can public-private partnerships provide solutions?
Matt Holland – Founder, CEO and CTO of Field Effect
Town Hall
Updates from IAIS committees with moderated Q&A
Executive Committee Chair, Vicky Saporta, kicked off the Town Hall with perspectives on the growing macroeconomic risks the insurance sector faces. IAIS Secretary General, Jonathan Dixon, then highlighted the work the IAIS has done on key strategic themes affecting the global insurance sector and the broader financial system. IAIS committee Chairs next gave an overview of key deliverables achieved over the past six months and activities currently underway, setting the scene for the panel sessions that followed.
The current environment highlights the importance of the rigour with which we undertake our risk assessments.
A wide-ranging Q&A followed, covering topics including NatCat protection gaps, the ICS and FinTech.
David Altmaier – Vice Chair, IAIS Executive Committee and Commissioner, Florida Office of Insurance Regulation
Gary Anderson – Chair, IAIS Policy Development Committee and Commissioner, Massachusetts Division of Insurance
Shigeru Ariizumi – Vice Chair, IAIS Executive Committee and Vice Commissioner for International Affairs, Japan Financial Services Agency
Peter Braumüller – Chair, IAIS Implementation and Assessment Committee and Managing Director of Insurance and Pension Supervision, Austrian Financial Market Authority
Jonathan Dixon – Secretary General, IAIS
Dieter Hendrickx – Chair, IAIS Macroprudential Committee and Head, Prudential Policy Insurance, National Bank of Belgium
Petra Hielkema – Chairperson, European Insurance and Occupational Pensions Authority
Vicky Saporta – Chair, IAIS Executive Committee and Executive Director, Prudential Regulation Authority and Bank of England
Daniel Wang – Chair, IAIS Climate Risk Steering Group and Executive Director, Insurance Department, Monetary Authority of Singapore
Diversity, equity and inclusion
DEI for better consumer and prudential outcomes
This panel, looking at the topic from both the supervisory and industry viewpoint, considered how embedding diversity, equity and inclusion supports better governance, stronger decision-making and equips insurers to better serve customer needs.
Insurance needs to be a reflection of the society it protects.
The panel recognised that different parts of the world can have different DEI focuses and priorities due to national context, but there was a meeting of minds on several key points, including that conscious inclusion of different perspectives reduces the shortcomings of group-think. In turn, this leads to more robust decisions, and more effective risk management and business outcomes.
Francisco Astelarra – Secretary General, Interamerican Federation of Insurance Companies
Chlora Lindley-Myers – Director, Missouri Department of Commerce and Insurance
Helen Rowell – Deputy Chair, Australian Prudential Regulation Authority and IAIS Diversity, Equity and Inclusion Champion
Nomfundo (Fundi ) Tshazibana – Deputy Governor, South African Reserve Bank, and CEO, Prudential Authority
Moderator:
Gerry Cross – Director of Financial Regulation Policy and Risk, Central Bank of Ireland
Consumer preferences
What changing consumer preferences mean for global insurance supervision
This well-rounded panel including academia, an insurer, two supervisors and an expert on cultural and behavioural risk provided inspiration on how to supervise for better consumer outcomes. In this rapidly shifting environment where consumers want choice, convenience and value for money the panel discussed the challenges posed by complex products, the overwhelming length of disclosure information and the cost of living crisis.
Conduct and culture are critical to an insurance sector that meets customers’ wants and needs.
The panel then turned to methodologies and indicators for supervisors to proactively supervise for fair treatment and positive outcomes for customers.
Elizabeth Arzadon – Managing Director, Kiel Advisory Group
Brenda J. Cude – Professor Emeritus, University of Georgia
Godfrey Kiptum – CEO, Insurance Regulatory Authority of Kenya
Fred Ngan – Co-Founder, Co-CEO and Director, Bowtie Life Insurance Company Limited
Mark White – Chair, IAIS Market Conduct Working Group and CEO, Financial Service Regulatory Authority of Ontario
Moderator:
David Altmaier – Vice Chair, IAIS Executive Committee and Commissioner, Florida Office of Insurance Regulation
Macroeconomic risks to the global insurance sector
Supervisory frameworks for monitoring and mitigating risks
The IMF set the scene for this panel, emphasising the stark macroeconomic outlook, marked by increased market volatility, heightened credit spreads and downbeat corporate earnings. The panel then discussed increasing credit and liquidity risks, how the IAIS’ Holistic Framework contributes to making the insurance sector more resilient and how it can be used to capture emerging risks to the financial stability of the insurance sector.
The IAIS Global Monitoring Exercise provides insurance supervisors with global insights on key risk and trends, creating a platform to discuss and coordinate supervisory measures.
Given the prolonged uncertainty, panellists agreed it is vital for insurers to be prepared and to have a continued focus on liquidity and credit risks.
Gustavo Caldas – Technical Analyst, Superintendência de Seguros Privados, Brazil
Kate Chiew – Group Chief Risk Officer, Great Eastern
Peter Giger – Group Chief Risk Officer, Zurich
Sean Ringsted – Executive Vice President, Chief Digital Officer and Chief Risk Officer, Chubb Group
Suzette Vogelsang – Senior Financial Sector Expert: Insurance, International Monetary Fund
Moderator:
Dieter Hendrickx – Chair, IAIS Macroprudential Committee and Head, Prudential Policy Insurance, National Bank of Belgium
Insurance Capital Standard
Looking ahead to the finalisation of the global capital standard
After a progress update on the ICS and a reminder about the next steps in the comparability assessment of the Aggregation Method, panellists from three regions shared their expectations on the steps for implementation of the ICS as a global standard.
Participation in the ICS monitoring period is critical to help shape the final standard.
With a generous Q&A, audience discussion centred on how stakeholder feedback will help to shape the finalisation of the ICS and its future implementation as a prescribed capital requirement.
David Altmaier – Vice Chair, IAIS Executive Committee and Commissioner, Florida Office of Insurance Regulation
Shigeru Ariizumi – Vice Chair, IAIS Executive Committee and Vice Commissioner for International Affairs, Japan Financial Services Agency
Petra Hielkema – Chairperson, European Insurance and Occupational Pensions Authority
Moderator:
Vicky Saporta – Chair, IAIS Executive Committee and Executive Director, Prudential Regulation Authority and Bank of England
Climate scenario analysis
Next steps in the journey to develop effective climate risk assessment
Against the backdrop of the COP27 climate negotiations, this panel discussed how supervisors and insurers should work together to address increasing climate risks. Panellists agreed with the pessimistic outlook of the audience with more than 75% of poll responses concluding that either a disorderly (26%) or too little, too late (50%) approach to addressing climate change is likely. As a result, panellists set out the importance of insurers effectively integrating climate risk into enterprise risk management and governance.
The risks from a disorderly or late transition to net zero are increasing risks for the insurance sector.
The panel also considered the risks of increased protection gaps driven by climate change and the steps needed to reduce them, including the use of adaptation measures and possible public-private partnerships.
Astrid Jäkel – Chief Risk Officer, Aegon N.V.
Ricardo Lara – Commissioner, California Department of Insurance
Bill Marcoux – Chair, Law, Regulation and Resilience Policies Working Group, Insurance Development Forum
Daniel Wang – Chair, IAIS Climate Risk Steering Group and Executive Director, Insurance Department, Monetary Authority of Singapore
Moderator:
Shigeru Ariizumi – Vice Chair, IAIS Executive Committee and Vice Commissioner for International Affairs, Japan Financial Services Agency
Photo gallery
Speakers
Vice Chair, IAIS Executive Committee and Commissioner, Florida Office of Insurance Regulation
Chair, IAIS Policy Development Committee and Commissioner, Massachusetts Division of Insurance
Vice Chair, IAIS Executive Committee and Vice Commissioner for International Affairs, Japan Financial Services Agency
Managing Director, Kiel Advisory Group
Secretary General, Interamerican Federation of Insurance Companies
Deputy Commissioner, Financial Sector Conduct Authority of South Africa
Chairwoman, Financial Market Commission of Chile (CMF)
Chair, IAIS Implementation and Assessment Committee and Managing Director of Insurance and Pension Supervision, Austrian Financial Market Authority
Group Chief Risk Officer, Great Eastern
Director of Financial Regulation Policy and Risk, Central Bank of Ireland
Secretary General, IAIS
Vice Governor, Central Bank of Chile
Group Chief Risk Officer, Zurich
Head of the Secretariat, Access to Insurance Initiative (A2ii)
President, International Actuarial Association
Chair, IAIS Macroprudential Committee and Head, Prudential Policy Insurance, National Bank of Belgium
Founder, CEO and CTO, Field Effect
Chairperson, European Insurance and Occupational Pensions Authority
Chief Risk Officer, Aegon N.V.
CEO, Insurance Regulatory Authority of Kenya
Director General, Insurance Europe
Commissioner, California Department of Insurance
Director, Missouri Department of Commerce and Insurance
Minister of Finance, Chile
Chair, Law, Regulation and Resilience Policies Working Group, Insurance Development Forum
President and CEO, American Council of Life Insurers
Co-Founder, Co-CEO and Director, Bowtie Life Insurance Company Limited
Director of Legal and Economic Affairs, The European Consumer Organisation, BEUC
Executive Vice President, Chief Digital Officer and Chief Risk Officer, Chubb Group
Deputy Chair, Australian Prudential Regulation Authority and IAIS Diversity, Equity and Inclusion Champion
Chair, IAIS Executive Committee and Executive Director, Prudential Regulation Authority and Bank of England
General Superintendent of Insurance, Costa Rica
Deputy Governor, South African Reserve Bank, and CEO, Prudential Authority
Senior Financial Sector Expert: Insurance, International Monetary Fund
Chair, IAIS Climate Risk Steering Group and Executive Director, Insurance Department, Monetary Authority of Singapore
Chair, IAIS Market Conduct Working Group and CEO, Financial Service Regulatory Authority of Ontario
Master of Ceremonies:
Regional Coordinator for Latin America, Access to Insurance Initiative (A2ii)
Master of Ceremonies:
Head of the Sustainable Finance Information Supervision and Co-Coordinator of the Climate Change Working Group, Financial Market Commission of Chile
A special thank you to the Financial Market Commission (CMF) of Chile for hosting the event.
