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The FSB and IAIS organised in Washington DC on 12 May 2015 a workshop on compensation to share experiences and discuss best practices and the implementation of the FSB Principles and Standards for Sound Compensation Practices in the insurance sector.
Industry participants noted that risk alignment of compensation is a common practice in the insurance industry and emphasized the importance of sound risk management and focus on internal controls.
Participants discussed the importance of robust governance frameworks of compensation policies, and the role of compensation in supporting a sound risk culture at insurers.
Officials from the FSB Compensation Monitoring Contact Group, IAIS Governance Group and senior executives from internationally active insurance companies participated in the workshop.
The workshop summary reflects regulators’ understanding of the main points raised in the discussion at the workshop. It does not necessarily represent the views of authorities nor consensus views expressed by insurers at the workshop. Workshop findings will be included in the next FSB progress report on compensation practices, which will be published in advance of the G20 Summit in November 2015.