Building Supervisory Capacity to Create Inclusive Insurance Markets in the Pacific

This report examines the insurance environment, regulator's capacity, and challenges faced by the supervisors in the Pacific. It recommends actions for supervisors in the Pacific to improve compliance to the '‘International Association Insurance Supervisors Insurance Core Principles (IAIS ICPs)' on inclusive insurance and supervision.The report presents an overview of the findings from a three country case study covering Fiji, Papua New Guinea and Timor-Leste. It also shares lessons from the supervision capacity building workshop held in Fiji that brought together 18 supervisors from six countries in the Pacific region. The report recommends that Pacific supervisors need to develop:

• Strategic plan on how to incorporate the role of the government into the development of the inclusive insurance markets;
• Better understanding of proportionality in order to develop a ‘'forward focus' and concentrate on the important aspects of risk management;
• Capability of staff in risk management;
• Processes for more effective monitoring of brokers, agents, and intermediaries.
• New standards in governance for all insurance companies.