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WFII
AND LIBERALISATION It has long been recognized that liberalisation of trade generally, and trade in financial services in particular, is critical to economic growth. Within the financial sector, a freer market in insurance can play a key role in enhancing such growth. The lowering of trade barriers to enhance the operation of foreign-based insurance agents and brokers is integral to this process. Therefore WFII calls upon all WTO members to put insurance intermediaries high on their agenda for GATS/ financial services negotiations. WFII and its members recognize that commercial insurance clients are increasingly operating on a global basis and therefore support their interests in the cross-border delivery of commercial insurance products and services. WFII believes that further liberalisation measures in our sector are absolutely necessary to give our members the opportunity to continue serving their clients with increasingly international trade interests. WFII has developed an international "guideline for GATS negotiations on insurance intermediaries". This guideline expresses what our sector believes should be the minimal degree of liberalisation which each country, member of WTO, should commit to for our sector. The value of this industry initiative lies in the fact that it expresses the position of the intermediaries industry worldwide and WFII hopes that it will facilitate the difficult task of the negotiators around the table to come to an agreement in the interest of the industry and the economy in general. WFII position regarding GATS negotiations on insurance intermediation (Extracts) WFII and its members are of the opinion that, during the GATS negotiations, all WTO members should at least commit to the following: Future measures and schedules of commitments adopted by members should, at least, not reduce or impair the current level of market access and national treatment available to foreign insurance intermediaries, insurance intermediary services and related services. Insurance intermediary (brokerage and agency) services related to Marine, Aviation and Transport insurance and reinsurance and related services are to be bound under the Cross Border Mode of supply without restrictions or limitations to market access. Members should allow insurance intermediaries (re-insurance brokers) to intermediate in all local and cross border re-insurance transactions. Members should limit any conditions, or limitations, that concern monetary transfers by insurance intermediaries, to what is necessary to assume their financial responsibilities in the country where the service is delivered. A foreign insurance intermediary should have the right to establish a commercial presence as a subsidiary - either wholly owned or through acquisition of an insurance intermediary already established in the host country, or as a branch. Where commercial presence is in the form of a joint venture with a partner located in the host country, the decision to operate through a joint venture, and the percentage of equity shares assumed by the foreign partner, should be determined solely by the joint venture partners themselves. A foreign insurance intermediary (broker or agent) should have the right to select, as his representative in the host country, any person who is domiciled and who physically resides in the host country. Host country members should provide temporary visa and associated work permits, where required, to professional level personnel employed by the foreign services supplier's home and third country offices. This allows them to enter the country and provide short and mid-term assistance to the host country insurance/insurance intermediation and related services operations. Foreign insurance intermediaries (brokers and agents) should be treated no less favorably than domestic intermediaries. The complete text of the WFII position is available at the WFII Secretariat or at the Secretariat of the members. |
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| ©2005 WFII | |