Leading players in the London market are coming together with a view to producing the first jointly owned compliance database for global insurance programmes. The database will provide details of regulations on a territory-by-territory basis.
The first big step toward this goal took place today when Airmic issued a Request for Proposal for a Database of International Insurance Requirements (DIIR)) to potential service providers. The project has the support of the International Underwriting Association, London and International Insurance Brokers’ Association and the European Risk Management Federation, FERMA. Other organisations are being kept abreast of developments, including the North American risk management association RIMS and the World Federation of Insurance Intermediaries.
Potential providers have until the end of January to express an interest. Airmic, which is administering the project, says it is looking for firms able to create and then maintain a database. It would also 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 to 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. “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.
A survey by Airmic in June found global compliance to be the number two ‘stay awake at night’ issue for its members. No date has been set for completion of the project, but it is anticipated that work will begin next year.
Other aspects of compliance to be captured by the database include:
- Pre-renewal information, including statutory obligations and restrictions
- Placement structure, including details of use of local carriers
- Insurance contract, including details of mandatory forms and wordings
- Premium payment, including details of local tariffs and payment protocols
- Claims notification and processing, including payment restrictions
- Consequences of non-compliance, including enforceability and penalties
“The international insurance industry contains myriad compliance requirements and keeping on top of these is no simple feat, said IUA chief executive Dave Matcham. “A compliance database for global insurance programmes will undoubtedly prove a huge asset and the IUA fully supports its creation.”
“We are happy to support this project. The creation of a single authoritative source of information has the potential to bring great benefits for our customers, brokers and carriers alike,” said LIIBA chief executive David Hough.
“This is an ambitious undertaking, but there is now a consensus that it is something best done collectively,” said Airmic technical director Paul Hopkin.
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