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International Monetary Fund. Monetary and Capital Markets Department
The South African insurance sector is large, complex, internationally active, and competitive. Supported by high penetration and density of insurance products, the insurance sector has grown to account for 18 percent of the financial sector in South Africa. The industry hosts an unusually diverse range of business models, including traditional participation focused models, bank-led conglomerates, asset management focused groups, and technology driven new entrants. Even among large insurers, risk profiles vary significantly, which is unique relative to other major insurance markets. Most large insurance groups are actively expanding their business both regionally and globally.
International Monetary Fund. Monetary and Capital Markets Department

Responsibilities, Objectives, and Powers MAIN FINDINGS A Independence and Resources B. Solvency Requirements C. Macroprudential Regulation and Surveillance D. Market Conduct BOXES 1. Enhancement of ASIC Capability 2. Interlinkage Between Insurers and Other Financial Sectors 3. APRA Stress Tests 4. Horizontal Reviews and Ad-hoc Industry-wide Survey 5. ASIC Initiatives on Fintech FIGURES 1. Size of Insurance Sector 2. Profitability and Solvency of Life Insurers 3. Trend of Asset Allocation of Life Insurers TABLE 1. Recommendations on

International Monetary Fund. Monetary and Capital Markets Department

and Approach B. 2014 FSAP Recommendations and Implementation C. Market Structure and Insurance Products D. Key Risks of the Industry MAIN FINDINGS A. Powers, Independence, and Resources B. Solvency Requirements C. Governance and Risk Management D. Group Supervision, Interconnectedness, and Conglomerate E. Winding-Up and Exit From the Market F. Market Conduct BOXES 1. Recognition of Future Profit in Solvency Regimes in Other Jurisdictions and Upcoming IFRS 17 2. Insurance Stress Tests 3. COVID-19 Impact on the Insurance Sector and

International Monetary Fund. Monetary and Capital Markets Department

C. Interaction with ECB/SSM and Other Agencies BANKING SUPERVISION A. Supervisory Approach and Techniques B. Capital Adequacy C. Credit Risk, Problem Loans, Asset Classification, Provisions and Reserves D. Concentration Risk, Large Exposures, and Transactions with Related Parties E. Risk Management, Internal Controls and Audit INSURANCE SUPERVISION A. Supervisory Approach B. Solvency Requirements C. Macroprudential Regulation and Surveillance D. Crisis Management and Resolution FINANCIAL CONGLOMERATE SUPERVISION A. Powers and Authority

International Monetary Fund. Monetary and Capital Markets Department
This technical note provides an update on the Australian insurance sector and an analysis of certain key aspects of the regulatory and supervisory regime. The note analyzes the practice in relation to selected Insurance Core Principles (ICPs) in the context of a wider discussion of key issues in regulation and supervision. Despite the negative impact of the low interest rate environment, the life insurance industry retains sufficient loss absorption capacity. The Australian Prudential Regulation Authority (APRA) has undertaken a comprehensive reform of prudential regulation while improving the consistency of the framework between life and general insurers. This focused review confirms that prudential regulation and supervision by APRA is reasonably conservative. The risk-based capital framework is reasonably conservative, which facilitates supervisory risk assessments. APRA has high technical capacity to conduct effective supervision. While there are some gaps in the regulatory regime, APRA seeks to address these through its supervisory process. The report recommends that APRA should expand and deepen its scrutiny of group activities, especially those entailing risky investments and material intragroup transactions.
International Monetary Fund. Monetary and Capital Markets Department

’ workload. To enable the PA and FSCA to properly implement those new reforms, additional resources are needed to support the recruitment and retention of staff with specialized expertise (such as in the areas of IT, cyber security, and advanced risk modeling). It is also important for both the PA and FSCA to invest in IT systems that can support the analysis of data that has become (or is expected to become) available as a result of the various regulatory reforms. B. Solvency Requirements Valuation of Assets and Liabilities 34. Insurers are required to adopt

International Monetary Fund. Monetary and Capital Markets Department
This Technical Note analyzes the key aspects of the regulatory and supervisory regime of banks, insurance companies and financial conglomerates (FCs) in Belgium. The regulatory framework for Belgian financial institutions has been strengthened substantially since the 2013 Financial Sector Assessment Program. Notably, new national banking and insurance laws have been issued, the Bank Recovery and Resolution Directive and amendments to Financial Conglomerate Directive have been transposed, Solvency II has been implemented, and the National Bank of Belgium has been designated as the macroprudential authority. This has improved significantly the regulatory framework and broadened its scope to better address the challenges posed by FCs. Financial sector supervision has also been upgraded markedly.
International Monetary Fund. Monetary and Capital Markets Department

information systems is also strongly recommended to support high quality supervision and address the risks from increasingly complex activities of insurers. In particular, APRA and ASIC IT infrastructure (such as data and IT systems) should be further improved to facilitate effective risk-based supervision and enforcement, particularly of insurers’ conduct of business and complex activities (such as derivative transactions). B. Solvency Requirements Valuation of Assets and Liabilities 38. Insurers are required to adopt a fair-value approach to the valuation of

International Monetary Fund. Monetary and Capital Markets Department

(including calculation of best estimate loss absorption capacity of deferred taxes (LAC_DT)). The current NBB staff obtained deep knowledge during the implementation process, and those professional staff would be difficult to replace with others. Strong engagement from senior management and reasonable compensation seem to help the NBB retain those staff. The NBB is encouraged to monitor the retention of the staff carefully. B. Solvency Requirements Valuation of Assets and Liabilities 114. Insurance assets and liabilities are valued consistently with

International Monetary Fund

Section 2:86 (reinsurance agents) the following requirements must also be satisfied: an own funds requirement of € 25,000, or professional indemnity insurance or a comparable facility covering its liability for mistakes, omissions and negligence, to a sum of at least € 500,000 per occurrence and at least € 750,000 per annum for all occurrences together, or a combination of professional indemnity insurance or a comparable facility equivalent to either at least € 25,000 or as under (b). Solvency Requirements The following minimum ongoing capital is