International insurers including Allianz SE (ALV) and AXA SA (CS) will be supervised globally under common rules to prevent a repeat of calamities such as the collapse of American International Group Inc. (AIG), an industry group said.
The Basel-based International Association of Insurance Supervisors today published a draft of new rules for consultation. Comments to its secretariat are due by Aug. 31 with the regulations to be completed by July 1, 2013, the association said in a statement.
The framework will address “potential adverse developments,” including deficiencies in governance or financial conditions, Monica Maechler, chairman of the IAIS’s technical committee, said in a conference call from Basel today.
The IAIS, established in 1994, is working on increasing industry oversight and has been gathering information on the practices and supervisory rules of its 142 member nations. The Financial Stability Board, which coordinates global regulators’ response to the worst economic crisis since the Great Depression, wants banking and insurance supervisors to improve their monitoring of international companies.
Insurers and reinsurers posted $235 billion in writedowns and credit losses from the global credit crunch. Losses in AIG’s London-based financial products unit forced the company, once the world’s biggest life insurer, to seek a bailout from the U.S. government.
Maechler is also vice chairman of the Swiss Financial Market Supervisory Authority.
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