Beom Ha Jee, Professor and Dean, School of Management and Economics, Handong Global University, Korea
Rodis Paik, Head of Legal and Corporate Affairs, MetLife Insurance Company of Korea
In many places in the world, especially since the financial crisis in 2008, consumer protection has become a growing focus for financial regulators. While insurers welcome measures that increase customer trust in insurance, consumer protection measures can sometimes have unintended consequences. For example, aggrieved customers are increasingly heading straight to the regulator for mediation and resolution of their concerns. This direct intervention by regulators on behalf of individual customers is problematic for insurers, creates an atmosphere where a fair outcome is hard to achieve, and undermines the bonds of trust between the insurer and its customer which is central to the insurance business.
1. How can the international insurance regulatory community best balance the need for protection of local residents in individual jurisdictions where multinational insurance groups operate and avoidance of unnecessary duplication of regulatory burdens?
2. Is the U.S. multi-jurisdictional system an appropriate model, or a useful resource of experience, for global cooperation among regulators?
3. What regulatory roles are best left to local jurisdictions and which to a central coordinating body (e.g., IAIS)?
4. How can international supervisors share skills and experience to better address the increasingly complex global insurance markets and company processes?
5. If effective group supervision requires supervisor cooperation, who is responsible for regulatory outcomes?
1. How does the underlying uncertainty about climate change and the future of international responses create opportunities and risks for the insurance industry?
2. What areas of insurable risk are available to be developed by insurers?
3. How can insurers address the “extreme tail” risks associated with environmental risk?
1. How have the economic crisis and aftermath affected insurance lines, e.g., higher claims, decline in sales, growth in sales, new products?
2. How has the experience in financial services affected the direction of insurance regulation? Is insurance regulation affected by mistaken assumptions about industry needs and norms, e,g., excessive restriction on the use of needed hedging facilities?
3. How will the recent experience change risk management practices in the industry?
4. Will problems in the derivatives markets reduce or change the use of capital markets for insurance activities?
5. What new market opportunities are created by the recent crisis?
Insurers have a clear vision of how enterprise risk management (ERM) will add value to their organizations but face business challenges in progressing toward that goal, according to Towers Watson's Seventh Biennial Global ERM Survey, released in November.more articles