KEY ISSUES AND POSITIONS
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. Further, it will provide a facility for those adversely affected by market abuse to seek appropriate redress.
WFII principles: Regulation on insurance intermediaries (June 2002)
Since its creation, WFII has been promoting global liberalisation of the insurance intermediation market in the interest of all parties concerned: clients, insurers and insurance intermediaries. WFII is consistently active in monitoring and promoting liberalisation in the framework of the various deals on free trade being negotiated on a global basis.
WFII position paper on liberalisation (March 2013)
In a global economy, many intermediaries have clients who have businesses with risk exposures in more than one country. The challenge for intermediaries is to find the best coverage protection for the client’s risks. While some risks are covered individually in the local insurance market, others can be more appropriately covered on a master policy which may include risks located in several countries.
Today’s sophisticated insurance market often requires insurance agents and brokers, particularly in the commercial lines area, to provide their clients with risk management and insurance consulting services, which are beyond the services typically associated with the placement and servicing of a policy contract. Agents and brokers offer these additional services, not compensated for by commissions, as part of their expanding role as insurance professionals responding to their clients’ risk needs. Taking this into consideration WFII adopted the following principles regarding remuneration of insurance intermediaries.
WFII principles: Remuneration of intermediaries (June 2003)
The foundation of any insurance relationship is trust. In the insurance transaction, insurance intermediaries have responsibilities and obligations to both the insurance customer and the insurer.
Managing those relationships in an open and transparent manner ensures that trust and upholds the integrity of the insurance business and the value intermediaries provide to customers and society.
WFII principles: Transparency in insurance (March 2005)
People should be educated about financial and insurance matters as early as possible in their lives.
The role and functioning of the various players in the financial and insurance market should be properly explained. This would not only create awareness about the financial products themselves but it would also contribute to the understanding of the functioning of the sector.
WFII position paper: Insurance education of the public (October 2005)
WFII is of the opinion that its current principles on Regulation on Insurance Intermediation should equally apply to Microinsurance. Regulation is vital in this framework in order to protect the policholder. It is important that the distribution channels are well placed and competent to sell microinsurance to policyholders.
WFII policy position on microinsurance (May 2010)