Mauritian legislation on Insurance? Established in 1994, the International Association of Insurance Supervisors (IAIS) represents insurance regulators and supervisors of some 190 jurisdictions in nearly 140 countries. The agency’s Insurance Core Principles (ICPs) provide a globally accepted framework for the supervision of the insurance sector. The ICPs apply to the supervision of all insurers whether private or government-controlled insurers that compete with private enterprises.
In the case of Mauritius, there is the Insurance Act 2005 which is executed by the Financial Services Commission (FSC) with the primary aim of regulating the insurance business in the island. The Mauritian insurance industry has grown with assets amounting to Rs 95. 9 bn for 21 insurance companies recording an increase of 8%. Its total gross premium has risen by 9% from Rs 17. 5 bn in 2010 to Rs 19. 2 bn in 2011. Forecasts from Statistics Mauritius and FSC show that the insurance industry contributes to 3. % of the national GDP. In what ways does the Insurance Act 2005 (IA 2005) comply with the ICPs formulated by the IAIS? The FSC’s strategic plan is engineered towards consolidating the legal and regulatory frameworks, reinforcing the supervisory and enforcement actions, financial stability, international relations, consumer and investor protection and delivering a higher level of performance entailing to the maintenance of its competitive advantage.
The Term Paper on Historical Development of Insurance Legislation in Kenya
The notion of insurance in Kenya can be traced back to the “social insurance programme” which for a long time has been around Africa. However, the history of the development of commercial insurance in Kenya is closely related to its colonial heritage. Like some African and other developing countries, there was no specific insurance legislation in Kenya until 1960, when the Insurance Ordinance of ...
In its reinforcement of the supervisory and enforcement actions, the FSC reviewed the inspection procedures and manuals for each sector by aligning the supervisory approaches with international best practices which involve amongst others the IAIS- ICPs to ensure financial soundness of regulated institutions. The ICP 1 states that the authority responsible for insurance supervision and the objectives for same are to be clearly defined. Section 3 of the IA 2005 clearly makes provision for the ICP 1 by highlighting that the FSC is responsible for its administration by following the objectives mentioned earlier.
The clear definition of objectives will foster transparency where government, public, legislature and other stakeholders involved can derive expectations about the supervision and to judge how well the regulatory bodies is fulfilling its objectives. The ICP 2 highlights the duties and powers of the supervisor. One of the duties is the independence, accountability and transparency. Secondly, protection of confidential information is another duty. Thirdly, he is entitled to the power of being legally protected. Fourth point is the adequate resources to exercise his powers and duties.
Lastly, he shall meet the high professional standard set by the regulatory employer. The ICP 2 can be found in the Section 3(3)(c) which implies public transparency. Section 3(3)(d) mentions the adequacy of resources at the disposal of the supervisor to be used in an efficient and economic manner. The protection of confidential information is found in Section 3(3)(f).
However, no clear provision has been made to mention the legal protection of the supervisor coupled with the accountability, transparency and independence to help to meet the objectives.
Information and confidentiality requirements stipulated in ICP 3 where the supervisory body exchanges information with other supervisory authorities subject to use and purpose of the deed. The supervisory body shall have the legal authority and power to obtain information for supervisory and investigative purposes. It can even claim same from the non-regulated members. ICP 3 was mentioned in the section 119 under the sub-title ‘’Exchange of information and mutual assistance’’ but has been repealed by the Insurance Amendment Act 2007 (IAA 2007).
The Business plan on Recruitment And Selection” Undertaken In Aviva Life Insurance
The project titled “RECRUITMENT AND SELECTION” Undertaken in AVIVA life insurance. AVIVA is a UK based insurance group. It has a long history dating back to 1834 and has a joint venture with DABUR groups. Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share. It is one of the leading providers of life and pensions products to Europe and has ...
A legal entity which intends to operate in insurance activities must be licensed. The pre-incorporation procedures must be clear, objective, and public. Licensing is another IAIS principle falling under the ICP 4. The IA 2005 caters for licensing for the insurance business from section 7 to section 13 covering the general restrictions on the business, restriction on composite insurance, reinsurance, application, granting of licence and its conditions to the holder and branches and display of licence.
Section 70 mentions the licensing of insurance brokers, insurance managers and insurance agents. Under sections 11 (2), 70(5) and 70(6) it clearly mentions about the transparency of the applicant profile. ICP 5 relates to the suitability of persons to act as board members, senior management executives, key persons in operations, and as owners of insurers to fulfil their suitable roles. Competence, integrity and ‘’fully fit and proper’’ are the criteria that is most sought in determining suitability of executives and non-executives.
The supervisory board executes the ICP 5 via the sections 30,31,32,37 and 38 of the IA 2005 which highlights the management of the insurer, duties of director, avoidance of conflict of interest, conditions for fit and proper persons and the setting up of board sub-committees. Corporate governance requires insurers to establish and implement the framework providing proper management of the business and to protect the interests of the policyholder. ICP 7 makes provision for it, i. e to disclose the checks and balances of the system.
Sections 31 and 38 accounts for ICP 7 which defines the parameters where directors should exercise their duty and the sound functioning of the board sub-committees. ICP 16 relates to the early warning system whereby the Enterprise Risk Management (ERM) for solvency purposes is established. Under this principle, insurers need to disclose all relevant risks that they are more likely to incur. Under the IA 2005, the ICP 16 is applied under the section 16(1) mentioning that technical provisions shall be disclosed in the accounts of the insurer. Capital adequacy falls under the ICP 17.
The Term Paper on Relience Insurance
Reliance Insurance Company, now officially known as Reliance Insurance Company [in Liquidation], was founded in Philadelphia in 1817. In October 2005, Reliance Insurance Company had taken place in India. Reliance Life Insurance Company Limited is an associate company of reliance – Anil Dhirubhai Ambani Group. Reliance Capital Limited is one of India’s leading private sectors. Reliance ...
It is established for solvency purposes so that insurers can provide for unforeseen losses and for degrees of supervisory intervention. The ICP 17, however do not apply to non-insurance entities (regulated or unregulated) within an insurance group. The latter’s legal department does fall under the principle of capital adequacy. It requires that a total balance sheet approach is used in the assessment of solvency to recognise the interdependence between assets, liabilities, regulatory capital requirements and capital resources and to require that risks are appropriately recognised.
Under the IA 2005, sections 14 to 23 highlight the solvency part of insurance companies to the disclosed to the FSC. The IAIS ICPs are dominantly present in the IA 2005. It highlights the credibility of our insurance companies on the international level to the eyes of the investors’ community at large. The fact that the IA 2005 made provisions to align with the level of IAIS ICPs is a milestone reached in making Mauritius an international financial centre in the region.
