The International Association of Insurance Supervisors (IAIS) has voted to scrap “observer membership” status, which included participation in some IAIS meetings, in favour of creating new stakeholder consultation procedures.
The new consultation procedures being developed will likely outline how certain stakeholders may participate in portions of some meetings by invitation only as well as the creation of open hearings with stakeholders separate from IAIS meetings.
The National Association of Insurance Commissioners (NAIC) delegation present at the decision was united in its strong opposition to the measure to close meetings to stakeholders.
“I am extremely disappointed in the outcome of [the] vote to end observer status at the IAIS,” said Adam Hamm, NAIC president and North Dakota insurance commissioner.
“Observers run the range of consumer advocates, insurance experts, and industry representatives—all of whom have critical input to share on the real-world consequences of decisions made by regulators.”
Hamm continued: “Shutting them out of the official process in favour of ‘invite only’ participation deprives IAIS members and stakeholders alike and could diminish the credibility of decisions made at the IAIS.”
Kevin McCarty, Florida insurance commissioner who also serves on the IAIS executive committee, commented: “Over the years, the IAIS has benefitted from the input and ideas provided by our observers, which not only result in quality end products, but also provide our stakeholders with a better understanding of our work and our development processes.”
“US state regulators have pushed for more transparency and openness within the IAIS over the years and therefore we are concerned about changes [that] will result in less transparency and openness by closing all meetings to stakeholders going forward.”
US state regulators are not alone in their concern with the new process. Congress has introduced a bipartisan resolution calling for openness and transparency by the IAIS.
"At the end of the day, any global insurance standards that are enacted will have a direct impact on consumers and our markets and so they deserve a seat at the table," said Monica Lindeen, NAIC president-elect and commissioner of the Montana office of securities and insurance.
