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WFII
AND REGULATION ON INSURANCE INTERMEDIATION WFII is of the opinion that every country should have specific regulation on insurance intermediation. WFII believes that good and fair regulation/legislation is critical to public confidence in the insurance industry. It will improve the relationship between the insurer, intermediary and consumer/customer and strengthen consumer confidence and protection. Regulation and legislation should also encourage fair competition and protect the integrity of the market. Furthermore, it will provide a facility for those adversely affected by market abuse to seek appropriate redress. To promote these objectives, WFII has developed a paper "Principles for regulation on insurance intermediation", which includes rules, principles and issues which, according to the industry, should be taken into consideration when developing a national regulation on insurance intermediation. The main objective of this checklist is to assist national associations of insurance intermediaries when discussing with officials of countries which are considering the development or the change of regulation on insurance intermediation, and to assist those countries which are opening up their markets in the development of regulation on insurance intermediation. While specific rules need to be adapted to specific national market conditions, WFII is of the opinion that a minimum framework should be applied in every country, in order to ensure that the regulation is adapted to the international market and regulatory practice. The Principles for regulation on insurance mediation should be interpreted as an illustration of the philosophy that has been adopted by all members of WFII rather than a finalized document on which no discussion is possible. Indeed, at WFII, we consider these principles as an agenda for dialogue with all interested parties at all levels. The principles only cover the specific regulatory issues related to insurance intermediation. It starts from the assumption that a number of basic commercial rights for insurance intermediaries, such as the right on portfolio and related issues, are established in the jurisdiction through other regulations or through contracts. If these rights are not well established according to international market practice, then these should be developed (through regulation, legislation or contracts) in parallel with the specific regulatory issues. The complete text is available at the WFII Secretariat or at the Secretariat of the members. |
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| ©2005 WFII | |