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The International Association of Insurance Supervisors (IAIS) has published an application paper on the regulation and supervision of mutuals, cooperatives and community-based organisations (MCCOs). The paper has been welcomed by two leading mutual insurance associations, which said it recognises the value of mutual and cooperative insurers, and acknowledges the need for appropriate regulation of different types of insurer.
The International Cooperative and Mutual Insurance Federation (ICMIF) and the Association of Mutual Insurers and Insurance Cooperatives in Europe said the paper “represents an important step forward in recognising that different types of insurers need to be regulated in a way which is appropriate to their structure and their relationship with their policyholders”.
ICMIF said it encourages supervisors around the world to adopt the IAIS proposals as their core standard for the supervision of mutual and cooperative insurers. Shaun Tarbuck, chief executive of ICMIF, said: “This paper is a strong recognition that MCCOs are an important business model for improving access to insurance. We support the paper’s discussion on relevant proportionality in all national jurisdictions, and we will be supporting ICMIF members in all countries to ensure this is upheld.”
In the paper, the IAIS identifies that mutuals are a significant factor in economic and social development, the associations noted, adding: “It further recognises that cooperatives are sustainable and successful enterprises. The IAIS recommends that supervisors, regulators and policymakers consider the guidance for the proportionate application of the insurance core principles to mutual and cooperative insurers, and to identify and remove unnecessary barriers in disproportionate regulation and supervision, while at the same time ensuring the appropriate level of policyholder protection.”