FERMA has welcomed progress on the creation of a global insurance compliance database taken by UK member association Airmic. Airmic asked now potential service providers for an expression of interest in providing a database of international insurance requirements by the end of January 2012.
Airmic is looking for firms able to create and then maintain a database, which will contain details of regulations on a territory-by-territory basis. It will consider splitting the two functions, so that interested parties can bid for one or other. Insurers, brokers, specialist data companies and international legal firms are among those who have shown an interest informally.
“The wide level of market interest in this project shows what an important issue it is – one that unites underwriters, brokers and buyers,” said Airmic board member Helen Hayden, who spoke on the subject at the FERMA Forum in October. “The work will underpin the integrity of insurance programmes and ultimately their ability to deliver for clients.”
The main focus will be to provide global guidance on admitted and non-admitted insurers by jurisdiction. This varies not only between countries, but also within some territories such as the US. It can also depend on the class of business being written. Failure to comply can result in fines, cancellation of cover, reputational damage and, in exceptional cases, imprisonment.
The project also has the support of the International Underwriting Association, London and the International Insurance Brokers’ Association. Other organisations are being kept abreast of developments, including the North American risk management association RIMS and the World Federation of Insurance Intermediaries.