The International Association of Insurance Supervisors proposes to limit participation of "observers"—including insurance industry associations, lawyers, consultants, non-governmental organizations and consumer advocates.
In an Oct. 11 memo, the IAIS tells observers they "will not take part in Task Force, Working Group or Committee meetings," except in certain sessions or dialogues. Instead, observers can submit written comments in response to surveys or questionnaires "as necessary."
How much observers are held at bay from key subcommittee work is still up for discussion, according to sources in Taipei, site of an upcoming IAIS meeting. If the memo stands as policy the industry, whp pay hefty dues to be an "observer," would be walled off from the process.
One U.S. industry person called it a seizure of insurance policy worldwide by a few with certain interests, including the Financial Stability Board leadership. Another called the tone of the IAIS memo from Executive Committee Chair Peter Braumüller "imperious."
The IAIS has been criticized as being too close to the insurance industry, and now that the IAIS is developing a first-ever global capital standard globally for insurers, it needs to proceed without too much industry influence. The industry is still calling foul.
Without commenting on any specific proposal, Dave Snyder, international supervisory vice president with the Property Casualty Insurers Association says, "Now is the time transparency should be maximized."
Snyder says he hopes transparency "will take the form of all insurance industry observers having full access to all IAIS deliberations, which is particularly important considering the initiatives IAIS has embarked upon and the importance of those initiatives to industry, markets and consumers.
"I can appreciate that there are many questions about our plans to increase the IAIS' efficiency, and we plan to personally discuss the matters further with members and observers during our meetings this week," IAIS spokesperson Andrew Stolfi says.
He said that the IAIS package of measures is meant to bring the IAIS' processes and procedures up to date to meet the increased role the IAIS has taken within the international financial community over the last several years.
The NAIC could not immediately be reached for comment, as many staff and members were in Taipei for the meeting.
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