Proportionate Approaches to the Supervision of Intermediaries Consultation Call Report
On the topic: Innovative approaches to distribution are important to achieve scale and serve low-income groups that traditionally have not had access to insurance. Large client aggregators such as retailers with numerous sales agents and mobile network operators increasingly play an important role in distribution.
Insurance supervisors need to keep up to date with such innovations and deal with them proactively. A flexible supervisory approach is needed, which strikes a balance between facilitating innovations by the industry and protecting the consumer. This might mean taking a ‘test-and-learn’ approach to respond to fast-developing market practices in digital and mass distribution for the low-income segment.
Many supervisors are striving to apply proportionate responses to the supervision of intermediaries, some of which are taking on new roles in the delivery of insurance. However, widely-accepted solutions to many practical challenges are still evolving. On this call we will learn about how various supervisors have approached the supervision of intermediaries in their jurisdictions, whilst also reflecting on the prevailing IAIS guidance on the topic and work currently underway.