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For the insurance sector, one of the main obstacles to international regulatory convergence is the fragmented national and international supervisory landscape, the Geneva Association states in its response to the G20 summit.
It is of fundamental importance for a future efficient and sustainable regulatory and supervisory framework to assure that efforts should concentrate on those aspects that are clearly connected to what went wrong and resist the temptation to branch out into other fields where more changes might lead to additional problems rather than solving the existing ones, the associations states.
Future regulatory reforms need to get the balance right between the required resilience of the financial system and market efficiency, the statement continues.
Governments need to be fully aware of the wider market impact of interventions that might lead to an unlevel playing field between companies with access to government funding and those without, between domestic market participants and group subsidiaries, and between the different sub-sectors of financial services, the association warns.
Letter to G20 ministers and related press release (30 March 2009)