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21 March 2014

GFIA delegation to G20 stresses insurers' social and economic role


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GFIA has called on the G20 to ensure that all international regulatory reform initiatives allow the insurance sector to continue to support the ambitious economic growth targets agreed last month by G20 finance ministers.


“The GFIA welcomes the Australian G20 Presidency’s focus on long-term growth and its ambitious targets", said Frank Swedlove, chair of the GFIA. “Sustainable long-term growth requires not only the financial security that insurers offer through efficient risk-transfer mechanisms but also the industry’s long-term investments.”

“It is vital that the ability of insurers to offer risk-transfer and retirement products and to invest long-term is maintained and encouraged. The link must always be made between international regulatory initiatives and the G20’s long-term growth objectives", said Swedlove, who is also president of the Canadian Life & Health Insurance Association.

“Time must always be allowed for a cost/benefit analysis in advance of any new regulation. Unintended consequences must be carefully considered", he insisted, referring to the current work on global capital standards by the Financial Stability Board (FSB) and International Association of Insurance Supervisors (IAIS) and also to the OECD’s work on taxation.

“As the FSB and IAIS design new global capital standards — under the pressure of a highly ambitious timetable — it is important that insurers’ exposure to market volatility is not overestimated. Such artificial volatility could reduce insurers’ willingness and ability to invest long-term in areas such as infrastructure. It could also have a significant impact on the availability and price of insurance products.

“The insurance industry looks to the Australian G20 Presidency to ensure there is appropriate political scrutiny before any new global standard is agreed", said Swedlove.

Press release



© GFIA - Global Federation of Insurance Associations


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