The Future of Insurance Regulation and Supervision

MANUEL AGUILERA-VERDUZCO is President of the Mexican Insurance and Surety National Commission (CNSF) JULIAN ARKELL is an unincorporated sole Consultant on international trade and services policy issues PHILIPPE BRAHIN is Head of Group Regulatory Affairs at Swiss Re and Member of Swiss Re's Risk Management Executive Team PETER BRAUMÜLLER is Managing Director of the Austrian Financial Market Authority and Chairman of IAIS ROB CURTIS is responsible for international and domestic prudential insurance policy at the UK Financial Services Authority (FSA) and Chair of the Solvency and Actuarial Issues Subcommittee of IAIS ERIK DENTERS is Lecturer in International Business Law at VU University, Amsterdam, The Netherlands MARTIN ELING is Professor of Insurance and Director of the Institute of Insurance Science at the University of Ulm, Germany MICHEL FLAMÉE is Vice Chairman of the Banking, Finance and Insurance Commission and Professor at the Economic and Financial Law Centre of the Free University of Brussels, Belgium YASUHIRO HAYASAKI is Deputy Commissioner for International Affairs at the Financial Services Agency of Japan AERDT HOUBEN is Director of the Financial Stability Division at the Central Bank of the Netherlands (DNB) NADÈGE JASSAUD is Deputy Head of the Financial Stability Division at the Banque de France BRADLEY L. KADING is President and Executive Director of the Association of Bermuda Insurers and Reinsurers (ABIR) DENIS KESSLER is Chairman and ChiefExecutive Officer of Scor Se, Franc JEAN KWON is at the School of Risk Management of St. John's University, UK MONICA MÄCHLER is Vice-Chairman of the Board of Directors of FINMA LEILA MADEIROS is Vice President and Corporate Secretary of the Association of Bermuda Insurers and Reinsurers DONATO MASCIANDARO is Full Professor of Economics and Chair in Economics of Financial Regulation at Bocconi University, Italy MAREK MONKIEWICZ is Lecturer at the Faculty of Management at Warsaw University, Poland MARC QUINTYN is Division Chief Africa at the IMF MARCELO RAMELLA is Assistant Director Research at the BMA and Visiting Fellow at London School of Economics and Political Science, UK PRZEMYSLAW RYMASZEWSKI is Project Manager and Research Assistant at the Institute of Insurance Economics at the University of St. Gallen, Switzerland SEBASTIAN SCHICH is Principal Economist at the OECD HATO SCHMEISER is Chair for Risk Management and Insurance and Managing Director of the Institute of Insurance Economics, University of St. Gallen, Switzerland SHARON TENNYSON is Associate Professor at the College of Human Ecology, Department of Policy Analysis and Management, Cornell University, New York, USA IAN TOWER is Technical Specialist in the Department of Monetary and Capital Markets of the IMF, seconded by the UK Financial Services Authority MARK TEUNISSEN is Senior Economist of the Financial Stability Division at the Central Bank of the Netherlands (DNB) KAREL VAN HULLE is Head ofInsurance and Pension Unit at the European Commission THERESE M. VAUGHAN is CEO of the National Association of Insurance Commissioners (NAIC), USA ALEXANDER WARZILEK is Coordinator of Insurance Supervision at the Austrian Financial Market Authority PAUL WINDELS is Financial Analyst at the Banking, Finance and Insurance Commission and Assistant Professor in Finance and Risk Management at the Hogeschool-Universiteit Brussel, Belgium WEI ZHENG is Associate Professor of Risk Management and Insurance and Vice Chair of the Department of Risk Management and Insurance at the School of Economics, Peking University, Beijing, China

Preface; D.Kessler Introduction; P.M.Liedtke & J.Monkiewicz PART I: THE GLOBAL FRAMEWORK Insurance Activity as a Regulatory Object: Trends and Developments and their Appreciation in the Context of Post-Crisis Global Markets; P.M.Liedtke Economic Rationale for Insurance Regulation; W.J.Kwon Global Financial Architecture and Insurance Sector; E.Denters Insurance and Financial Stability; P.Braumüller & A.Warzilek PART II: THE SUPERVISORY DIMENSION Quality of Regulation and Supervision; I.Tower Solvency as a Focal Point of Prudential Regulation: Supervisory Lessons and Challenges; R.Curtis The Architecture of Insurance Supervision Before and After the Financial Crisis; D.Masciandaro & M.Quintyn PART III: MARKET DIMENSION The Role of Market Discipline in the Insurance Industry; M.Eling Insurance Group Supervision: Addressing the Emergence of Adverse Network Dynamics; M.Mächler Credit Default Swaps: Towards Tighter Regulation of the 'Shadow Insurance Sector'; N.Jassaud & S.Schich The Regulation of Global Reinsurance Markets: Current State of Affairs and Future Challenges; P.Brahin PART IV: STAKEHOLDER PROTECTION Challenges and Approaches in the Consumer Protection in the Insurance Industry; S.Tennyson Insurance Guarantee Funds and their Relation to Solvency Regulation; H.Schmeiser & P.Rymaszewski Government Intervention in Insurance: an Examination of the Risk of Moral Hazard; M.Flamée & P.Windels Systemicness of Insurance Companies: Cross-Border Aspects and Policy Implications; A.Houben & M.Teunissen PART V: DEVELOPED MARKETS PERSPECTIVE Regulatory Challenges and Developments in the United States; T.Vaughan Regulatory Challenges and Developments in the European Union; K.van Hulle Regulatory Challenges and Developments in Japan; Y.Hayasaki PART VI: EMERGING MARKETS PERSPECTIVE China's Insurance Regulation: Framework, Issues and Prospects; W.Zheng Regulatory Challenges and Developments in Latin America; M.Aguilera-Verduzco Regulatory and Supervisory Issues andChallenges in Russian Insurance Sector in the Aftermath of the Transformation; M.Monkiewicz PART VII: INTERNATIONAL ISSUES Insurance Regulation: Mutual Recognition, Equivalence and International Standards; B.Kading & L.Madeiros Regulatory Future of International Insurance Centers; M.Ramella International Trade Agreements and their Impact on Regulation and Supervision of Insurance Services; J.Arkell