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

2. 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

3. 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

4. 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

5. 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