Getting global alignment on insurance regulation is proving far from straightforward. The US National Association of Insurance Commissioners (NAIC) and the European Insurance and Occupational Pensions Authority (EIOPA) have long struggled to agree on capital, for example. But there is emerging common ground - around ERM standards, for instance - and a more consistent implementation of the insurance core principles (ICPs) would certainly help alignment.
Rob Curtis, Global Insurance Regulatory Lead at KPMG in Australia, also highlights other common trends - using an ORSA for ERM frameworks; risk-based capital frameworks; and growing agreement over the Insurance Capital Standard (ICS). How that develops over time remains to be seen.
For example, supervisors might settle on commonality of outcomes, worrying less about the exact application of standards, which might prove challenging for some businesses. Will all supervisors apply IFRS 17 for solvency testing, for example? There still remains some way to go before global standards really simplify the regulatory burden.