1. IAIS Recent Developments Hyderabad, 16 November 2005 Yoshi Kawai – Secretary General International Association of Insurance Supervisors (IAIS) Website: www.iaisweb.org

2. IAIS Recent Developments 2 November 2005 Yoshi Kawai Overview Overview 1.IAIS Annual Conference 2005 2.Insurance Core Principles and Supervisory Framework 3.Solvency Requirements

3. IAIS Recent Developments 3 November 2005 Yoshi Kawai Overview Overview 1.IAIS Annual Conference 2005 2.Insurance Core Principles and Supervisory Framework 3.Solvency Requirements

4. IAIS Recent Developments 4 November 2005 Yoshi Kawai IAIS Standard Setting IAIS Standard Setting Core Principles Principles Supervisory Standards Guidance & Issues Papers

5. IAIS Recent Developments 5 November 2005 Yoshi Kawai ContentsRevised ICPs 1. Introduction Reason for supervision, Scope of ICPs, Implementation & Assessment 2. Conditions ICP 1: Conditions for effective insurance supervision 3. The supervisory system ICP 2: Supervisory objectives ICP 3: Supervisory authority ICP 4: Supervisory process ICP 5: Supervisory cooperation and information sharing 4. The supervised entity ICP 6: Licensing ICP 7: Suitability of persons ICP 8: Changes in control and portfolio transfers ICP 9: Corporate Governance ICP 10: Internal control 2.1 ICPs’ Structure & Content

6. IAIS Recent Developments 6 November 2005 Yoshi Kawai ContentsRevised ICPs 5. Ongoing supervision ICP 11: Market analysis ICP 12: Reporting to supervisors and off-site monitoring ICP 13: On-site inspection ICP 14: Preventive and corrective measures ICP 15: Enforcement or sanctions ICP 16: Winding-up or exit from the market ICP 17: Group-wide supervision 6. Prudential requirements ICP 18: Risk assessment and management ICP 19: Insurance activity ICP 20: Liabilities ICP 21: Investments ICP 22: Derivatives and similar commitments ICP 23: Capital adequacy and solvency 2.1 ICPs’ Structure & Content

7. IAIS Recent Developments 7 November 2005 Yoshi Kawai ContentsRevised ICPs 7. Markets and consumers ICP 24: Intermediaries ICP 25: Consumer protection ICP 26: Information, disclosure & transparency towards the market ICP 27: Fraud 8. AML/CFT ICP 28: Anti-money laundering, combating the financing of terrorism Annex 1 References to other IAIS principles, standards and papers Annex 2 Assessment methodology 2.1 ICPs’ Structure & Content

8. November 2005 Yoshi Kawai 2.2 Framework for Insurance Supervision the insurance sector and insurance supervision basic conditions for the effective functioning of financialgovernancemarket conduct supervisory assessment and intervention the insurance supervisory authority preconditions regulatory requirements supervisory action LEVEL 1 LEVEL 2 LEVEL 3 the insurance sector and insurance supervision basic conditions for the effective functioning of financialgovernancemarket conduct supervisory assessment and intervention the insurance supervisory authority preconditions regulatory requirements supervisory LEVEL 1 LEVEL 2 LEVEL 3

9. November 2005 Yoshi Kawai 2.2 Framework for Insurance Supervision basic conditions for the effective functioning of financialgovernancemarket conduct supervisory assessment and intervention preconditions regulatory requirements supervisory action LEVEL 2 LEVEL 3 the insurance sector and insurance supervision preconditions the insurance supervisory authority regulatory requirements supervisory LEVEL 1 LEVEL 2 LEVEL 3

10. November 2005 Yoshi Kawai 2.2 Framework for Insurance Supervision market conduct the insurance sector and insurance supervision basic conditions for the effective functioning of financialgovernancemarket conduct the insurance supervisory authority preconditions supervisory action LEVEL 1 LEVEL 2 LEVEL 3 the insurance sector and insurance supervision basic conditions for the effective functioning of financialgovernance supervisory assessment and intervention the insurance supervisory authority preconditions Regulatory requirements supervisory LEVEL 1 LEVEL 2 LEVEL 3

11. November 2005 Yoshi Kawai 2.2 Framework for Insurance Supervision the insurance sector and insurance supervision basic conditions for the effective functioning of financialgovernancemarket conduct supervisory assessment and intervention the insurance supervisory authority preconditions regulatory requirements LEVEL 1 LEVEL 2 the insurance sector and insurance supervision basic conditions for the effective functioning of financialgovernancemarket conduct supervisory assessment and intervention the insurance supervisory authority preconditions regulatory requirements Supervisory action LEVEL 1 LEVEL 2 LEVEL 3

12. IAIS Recent Developments 12 November 2005 Yoshi Kawai Overview Overview 1.IAIS Annual Conference 2005 2.Insurance Core Principles and Supervisory Framework 3.Solvency Requirements

13. IAIS Recent Developments 13 November 2005 Yoshi Kawai 3. Solvency Requirements * Public financial reporting capital liabilities assets liabilities Supervisory assessment of the financial position value of assets for supervisory purposes best estimate policy obligations risk margin capital requirement liabilities available capital assetsliabilities and capital requirement financial position tec hni cal pro visi ons

14. IAIS Recent Developments 14 November 2005 Yoshi Kawai www.iaisweb.org International Association of Insurance Supervisors (IAIS)