Post on 10-Jan-2016
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Activities of the OECD
VII ConferenceOn Insurance Regulation and Supervision in Latin
America
Lisbon, 24 April 2006
Kurt Chr. SchneiterChair
Insurance and Private Pensions Committee of the OECD
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Overview
1. OECD in general:
What is it, what are its mission and goals ?
How does it work ?
2. IPPC in particular
Characteristics
Main activities
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What is the Organisation for Economic Co-operation and Development (OECD) ?
An Organisation of 30 member countries committed to democracy and the market economy
A provider of comparative data, analysis and forecasts
so that governments can:
- compare policy experiences
- seek answers to common problems
- identify good practice
- co-ordinate policies
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OECD Member Countries
An organisation with global reach
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Working with countries around the world
Economies with which the OECD has working relationships
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The OECD’s mission
Article 1 of the OECD Convention:
Support economic growth
Boost employment
Raise living standards
Maintain financial stability
Assist other countries’ economic development
Contribute to growth in world trade
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OECD’s way of working
Analysis
Data Collection
Discussion
Peer reviews,multilateral surveillance
Implementation
Decisions
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Who drives the OECD work?
CouncilOversight and strategic direction
Representatives of member countries and of the European Commission; decisions taken by consensus
Committees
Discussion and implementationRepresentatives of member countries and of countries with Observer status work with the OECD Secretariat on specific issues
Secretariat
Analysis and proposals
Secretary-GeneralDeputy Secretaries-GeneralDirectorates
Annual budget: 336 million euros funded by member countries
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CouncilOversight and strategic direction
Representatives of member countries and of the European Commission; decisions taken by consensus
Insurance and Private Pensions Committee
Discussion and implementation
Member countries’ delegations include representatives from the private sector
Directorate for Financial and Enterprise Affairs
Analysis and proposals
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Insurance and Private Pensions Committee (IPPC)
International forum for insurance regulators, supervisors and private sector representatives
Active for more than 40 years
OECD Member countries represent around 95 percent of the world insurance market
30 Members and 5 Observers (Israel, Russian Federation, IAA, IAIS, IMF)
2 Working groups:private pensions, governmental experts
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IPPC: General objectif
Help Members and non-Members in developing
efficient, open and sound market-oriented insurance andpensions systems
based on high levels of transparency, confidence andintegrity
by promoting international co-operation
to improve awareness and understanding – especiallyamong policymakers – of major insurance and pensionsissues through
market and policy analysis, data collection andbenchmarking good practices
Insurance is a foundation of all economic activity
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Main areas of IPPC activities:
1. liberalisation of insurance markets
2. private pensions
3. private health insurance
4. governance
5. financial education
6. Mitigation and compensationof large-scale risks includingterrorism risks
7. monitoring of insurance marketand its regulatory framework
8. dissemination of statistical data
9. co-operation with non-membereconomies
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1. Foster liberalisation
Pursuing efforts at further liberalisation and regulatory reform in the field of insurance and private pension
Inventory and analysis of obstacles Options to accelerate liberalisation Revision of the OECD Codes of
liberalisation
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2. Supporting the growing role
of private pensionsThe OECD’s role on private pension systems:
Source of comparable, timely, reliable information, data collection activities
Regulatory / standard-setting work, practical, effective policy advice, especially on regulat-ion, with a view to promoting benefit security
High-quality, independent analytical work
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3. Private Health Insurance
Assess role of PHI as it complements and interacts with public health insurance schemes
Analysis of variation in market size / populat-ion coverage and of performance
Identify factors underpinning differences in performance
Identify useful government interventions and regulatory practices
PHI related issues such as ageing / longevity, medical malpractice etc.
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4. Governance: OECD standard setter for Governance issues
Revised corporate governance principles 2004 Council Recommendations in April 2005:
Guidelines for Pension funds governanceGuidelines for Insurers’ governance
Need for specific guidance related in particular to governance of insurers and pension funds owing to:
their role as major institutional investors their fiduciary role for consumers the asymmetry of information stemming from complexity and diversity of products the diversity and complexity of structure of ownership and organisation
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5. Financial Education
Increasing role of private pensions, insurance and financial products in providing social welfare benefits to citizens
Growing complexity of insurance and pension products and of their regulation
Larger responsibility given to individuals in the management of their long-term savings
Panel
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6. Optimise the management of large-scale risks OECD High-level Conference on Catastrophic Risks and Insurance, 22-23 November 2004
Two publications on Emerging risks and Environmental risks and insurance, publication of a wide-ranging study on terrorism risk
Definition of terrorism risk / coverage of terrorism risk: role of the insurance sector, financial markets and governments
International network to deal with compensation and mitigation of large-scale risks
Panel
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7. Monitoring of insurance marketand its regulatory framework
Forum for consultations among Member countries
Keeping informed of the activities carried out in other international bodies, coordination of work with these bodies
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Information – the indispensable basis for furtheranalysis, proposals, decisions, development
Panel Finite Reinsurance andPanel The effects of Ageing on Insurance
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8. Dissemination of statistical data
Yearly publication of insurance statistics
Pensions statistics
Contribution to PHI Statistics
Reliable and comprehensiv insurance statistics are not only the foundation of a sound insurance business and supervision but also an important element for any governmental decision on market policy
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9. Co-operation with non-member economies
Policy dialoguewith non-Member economies,encouraging the implementation of
best principles and practices and providing related assistance
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Insurance and Private Pensions
OECD materials and instruments
are available at
www.oecd.orgwww.oecd.org/daf/fin