Insurance is facing what has been described as a 'regulatory bear market'. Some of the most far-reaching developments centre on the G20’s push for a more harmonised, risk-based framework for international capital regulation within the insurance industry worldwide, which mirrors its approach to banking in the wake of the global financial crisis.
On top of developments coming out of the IAIS, Solvency II is now up and running in the EU and both China’s Risk Orientated Solvency System (C-ROSS) and South Africa’s Solvency Assessment and Management (SAM) will soon go live. There are also ongoing developments in the US and in most parts of Asia, covering both prudential and conduct regulation. It’s therefore little wonder that 94% of the insurance leaders taking part in our latest Annual Global CEO Survey see overregulation as a threat to their growth prospects, more than any other sector in the survey, including banking.