The European Insurance and Occupational Pensions Authority (EIOPA) and the World Bank have signed an operational Memorandum of Understanding (MoU) to develop the global insurance sector.
The MoU will enable both organisations to jointly promote a risk-based regulatory and supervisory framework in insurance, as well as the identification of systemic risk and the promotion of consumer protection.
Michel Noel, manager of non-bank financial institutions at the World Bank, said: “The World Bank is pleased to collaborate with EIOPA in promoting global risk-based supervision in insurance, strengthening the insurance regulatory and supervisory architecture for achieving sustainable development in the insurance sector, while fostering policyholders’ protection. It is our desire that this collaboration will enhance the support from the international community towards these efforts.”
Carlos Montalvo, executive director of EIOPA, said: “EIOPA strongly believes that a global business such as insurance demands global solutions, and that in a business built on risk, all parties, but most important consumers, will strongly benefit from risk-based supervision and regulation. To work together with the World Bank towards this aim will be not only a privilege, but also a much needed step in the right, global, direction.”
