Regulation IAIS highlights role of insurance supervisors in addressing pandemic protection gaps as part of the purchase set of lesson learned from the covid-19 pandemic the International Association Insurance supervisor or iais and access to Insurance initiative or a2ee have jointly published a note examining the role in certain supervisors could play in the design development and implementation of instrument-based programmies for pandemic risk do not consider key characteristic of proposal including public private partnership and risk pools and outlines the roles that supervisors can play as future initiative are developed do not focus on caps in coverage for types of risk where the verification is more difficult to achieve in particular coverage for non-damaged business interruption also bi loses in the context of pandemics in this regard the note draws parallel with supervisory approaches to address other types of risks that challenge the participate of diversification concept presented in the role will inform a future work and undertaken by iais on pandemic protection gaps as well as on the role of Supervisors in addressing protection caps and also more broadly the inside contained in the north are based on interviews with senior official from the supervisory authorities and also representing different regions and form.
International also organization from iais and a2e stakeholder events helped by throughout the second half of 2021 and review of existing literature on pandemic protection gaps and insurability of pandemics for the key takeaways the main key takeaways from the revenue covered in the note was including the first is supervisors can play an important role in helping to ensure that a balance of the policyholder protection and also Market development also his consideration are built into the design and implementation of the future multi-stakeholder and also Insurance based programmers to address pandemic risk also ideally supervisors will be involved in the development of such programmers from the upside to the insure the design incorporates the inside and expertise that supervisor can bring and then the second is the role of supervisor will vary according to their respective mandate supervisor with a financial inclusion or Market development mandate may take a different approach to purely Prudential and conduct authorities and also in some cases supervisor may be well and also well positioned to play a key role and key coordination also Administration roles in other cases this supervisor May provide input into a broader multi-stakeholder approach and then the next is there will be no one size fits all approach to addressing handmade.
Pandemic risk protection gaps and any approach will be shaped by the environment in the given of juriscation and then the next or the fourth is a cube role of four supervisor includes providing Technical and other advice to government on Prudential risk associated with any insurance based and also programming developed to address pandemic risk and the other regulatory framework it is under which such as programming could operate the next is supervisors could act as a bridge between the insurance sector and government it is playing a role in advising on the risk sharing implication that such initiative could have an interest from the micro and also macro Prudential perspective so thank you for watching and don’t forget to like comment and also subscribe