Promoting good conduct in insurance distribution Olivier Fliche, Chair of IAIS Market Conduct Working Group Old Windsor, 30 June 2017

Conduct of business supervision Helps to promote trust and confidence in insurance markets Enhances good conduct Contributes towards other supervisory objectives, eg financial stability Intermediaries have a key role

Diversity in insurance distribution Different types of insurance intermediaries, products, customers Diversity of intermediation markets Different degrees of involvement of insurers and intermediaries in the distribution model Emergence of new distribution channels

Challenges for supervisors Application of proportionality principle Recognising inter-relationships between insurer, intermediary and customer Non face-to face intermediation Encouraging innovation without increasing risks to consumers Promoting good conduct in distribution that ensures customers receive an appropriate level of protection regardless of the distribution channel

IAIS current/recent work on distribution 2016 Application Paper on Supervising the Conduct of Intermediaries 2017 updating of ICPs 18 (Intermediaries) and 19 (Conduct of Business) – 60 day public consultation commencing 30 June Current work on Issues Paper on the increasing use of digital technology in insurance and its impact on fair consumer outcomes and conduct of business supervision