27 September 2024
The Global Federation of Insurance Associations (GFIA) has responded to a paper by the International Association of Insurance Supervisors’ (IAIS) which proposes ways the insurance industry can ensure the fair treatment of diverse consumers.
While fully sharing IAIS’s commitment to ensuring that all customers, regardless of age, job, income, gender, or race, receive fair treatment, GFIA emphasises the need to also consider the role of supervisors in achieving these goals, as many of the Application Paper’s recommendations require supervisory support and approval.
GFIA proposes that the IAIS encourages supervisors to monitor local regulations and conditions that may hold back the ability of insurers to offer products to certain groups, including low-income diverse customers. The IAIS should also consider encouraging insurance supervisors to address social factors that might make it harder to make insurance more available.
While GFIA strongly supports the general principles behind diversity, equality, and inclusion, it also encourages the development of voluntary DEI policies at company level based on proportionality and confidentiality.
GFIA also warns that the Paper’s level of detail may make it difficult put it into practise. A more principles-based approach would better take into account the different regulatory frameworks, demographics, legal systems, and local needs.
Furthermore, GFIA also recommends that the IAIS better emphasises the importance of risk-based pricing, and underscores the importance of insurers being able access data as the best way to assess risk assessment and keep premiums affordable.
