Understanding risk to create resilient platforms for sustainable growth and human dignity.
IDF Highlights Critical Role Regulation Plays In Enhancing Resilience and Growth
November 11, Asuncion, Paraguay – Jurisdictional insurance supervisors will play a critical role in facilitating the use of insurance industry capabilities to promote sustainable development and enhance resilience to climate change and natural disasters in the world’s most vulnerable nations.
That was the message William Marcoux, chair of the Insurance Development Forum (IDF) Insurance Regulation and Resilience Policy Working Group, delivered to the International Association of Insurance Supervisors (IAIS) at its annual conference. The conference theme was "Risk based supervision to promote a safe and stable insurance industry."
"Regulation has as much of a role as capital and expertise in ensuring access to modern risk management and risk financing practices, particularly in the most vulnerable nations," Marcoux, a partner with DLA Piper law firm, explained. "This is why the IDF is engaging with policymakers, supervisors and other stakeholders to jointly identify regulatory hurdles to effective risk management and to build necessary regulatory capabilities."
The IDF Insurance Regulation and Resilience Policy Working Group consists of over 25 supervisors, industry officials, academics and other experts whose aim is to explore the role of insurance regulation and public policy in promoting sustainable development and enhancing economic and social resilience to large-scale disasters. Initial focus areas include developing a catalogue of regulatory and policy issues that impact the use of risk management tools in vulnerable nations and engaging with supervisors to create a regulatory toolkit that local governments might deploy to further develop their legal and regulatory regimes.
Marcoux made his remarks during a panel titled "Leveraging Insurance for Sustainable Growth and Development" including an overview of the various global framework agreements and initiatives that include insurance and risk management provisions (e.g., the United Nations Sustainable Development Goals, the Sendai Framework, the Paris Climate Agreement, and the G7 InsuResilience initiative) as well as an update on the Asia Pacific Financial Forum’s sustainable development program.
The Insurance Development Forum (IDF) is an unprecedented public/private partnership between leaders of the United Nations (UN), the World Bank Group, and the insurance industry. Its initial focus is to contribute to closing the protection gap—the gap between insured disaster losses and the actual economic costs of disasters—by optimizing and extending the use of insurance and its related risk management capabilities to build greater resilience for people, communities, businesses and public institutions that are vulnerable to climate change, disasters and related economic shocks.
The IDF is chaired by Stephen Catlin, and co-chaired by Joaquim Levy, World Bank Group Managing Director and Chief Financial Officer, and Helen Clark, Administrator of the United Nations Development Programme. Other Steering Committee members include Mark Carney, Governor of the Bank of England and Chair of the Financial Stability Board, and 13 insurance industry CEOs.