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Committees

Insurance Regulation Committee

Terms of Reference

Created – 1 June 1998, Updated – 9 August 2016

1.  Membership

Membership of the Committee is open to all IAA Full Member associations, in accordance with Article 4.3 vii of the Internal Regulations.

2.  Purpose

  • To promote the role of actuaries in the regulation and supervision of insurers so that the public interest is served.
  • To support the creation of international principles and frameworks for regulation and supervision of insurers in order to have actuarial principles realized where appropriate.
  • To maintain and to strengthen the relationships with key international organisations dealing with the regulation and supervision of the insurance and reinsurance industry (e.g. IAIS).

3.  Role

  • To liaise with the International Association of Insurance Supervisors (IAIS) on issues relating to the regulation and supervision of insurers.
  • To liaise with other interested bodies at the international level, on issues relating to the regulation and supervision of insurers.
  • To support key international organizations (e.g. the IAIS, the World Bank and the IMF) in the development of international guidelines or standards relating to matters such as capital adequacy requirements, valuation of assets and liabilities, financial condition reporting, the role of the actuary, actuarial opinions and actuarial qualification standards.
  • To outline international frameworks for actuarial standards of practice for insurers with regard to regulatory and supervisory requirements.

4.  Decision-making authority

The Committee operates within the IAA Statutes and Internal Regulations and makes recommendations for action by Council or the IAA Executive Committee as appropriate.

5.  Operational Matters

Frequency of Meetings:
The Committee meets at least twice a year in conjunction with each IAA Council meeting and may also meet by teleconference or electronic link as required.

Agendas and papers:
All meetings will have a formal agenda prepared by the Chairperson that generally must be distributed, along with required papers, at least one week before each meeting and made available on the Committee page on the IAA website.

Minutes:
Minutes will be prepared and distributed as soon as practicable after each meeting and will be made available on the Committee page on the IAA website.

Votes:
The committee shall attempt to make decisions by consensus. However, where necessary, decisions may be made by a simple majority of the Committee members voting either at the meeting or electronically, with the Chairperson having a casting vote in the event of a tie.

Reporting:
The Committee reports to the Executive Committee (EC). To facilitate communication, the EC appoints one of its members to serve as the EC liaison person.
The Committee Chairperson will submit a proposed workplan and, where applicable, a related budget for the coming year, for EC consideration and approval.
The Chairperson will provide a written update report to the IAA Secretariat after each bi-annual Committee meeting.

IAA Liaison:
The Committee will liaise with other IAA Committees and Sections as required to carry out its role and activities, and help these committees achieve theirs. This will include at least, where relevant, the Insurance Accounting Committee and the Committee on Professionalism of the IAA in relation to the interface between accounting standards and supervisory requirements for insurance companies, and the development of protocols regarding the respective responsibilities of actuaries and auditors in relation to financial statements prepared for supervisory purposes.
With other IAA Committees as required to undertake its role and activities. This will include especially those Committees who also have a closer relationship with the work of the IAIS.

External Liaison:
The Committee will liaise with external stakeholders as required to undertake its role and activities, including, where relevant, the IAIS, OECD and the World Bank.

Other operational matters:
When considered appropriate, and with the consent of the Council, to appoint and oversee subcommittees for specific tasks. The Chairperson of the Committee will act as the Representative Observer Member (Delegate) to the IAIS on behalf of the IAA. This role will include attending such IAIS meetings as are appropriate, promoting the IAA within the IAIS and liaising with other Observer Members to further the interests of the IAA and the actuarial profession. The Representative Observer Member will also encourage proactively other senior members of the IAA to attend or listen to IAIS and Observer meetings and conference calls as relevant topics emerge. The Representative Observer Member shall circulate the IAIS papers and the dissemination of information on developing IAIS issues to relevant IAA Committees and Officers of the IAA.
The Committee will share information regarding developments and initiatives in relation to insurance regulations via the Committee page on the IAA website.

6.  Subcommittees, Working Groups and Taskforces Reporting to the Committee

  • ComFrame Task Force
  • Joint ORSA Subcommittee with the Enterprise and Financial Risk Committee
  • Solvency Subcommittee
  • Reinsurance Subcommittee