CLHIA: Global Insurance Industry Urges G20 to Tailor Their Approach to Global Financial Regulation

OTTAWA, Oct. 2010 – In a letter sent today, the Canadian Life and Health Insurance Association (CLHIA) along with 16 other insurance associations from around the globe, voiced the industry’s collective views on proposed financial regulation to G20 leaders ahead of their upcoming Summit in Seoul, South Korea next month.

“We all recognize that, in the wake of the recent economic crisis, the new world order is a global approach to regulation. I am, therefore, pleased that the international community of insurance associations was able to come together and take common positions on issues that affect us all,” says CLHIA President Frank Swedlove.

“The global insurance industry is of the firm view that a ‘one-size-fits-all’ approach to regulation would not be appropriate,” emphasized Mr. Swedlove. The letter points out that the insurance industry had fared relatively well during the financial crisis and that the business model of the insurance sector was unique and quite distinct from other financial services sectors, such as banking.

The industry also voiced its continued support for strong prudential and business conduct standards using a risk- and principles-based approach. It expressed its hope that regulators would give careful consideration to the impact excessive capital requirements could have on the industry and consumers. It also drew attention to efforts to coordinate new insurance regulation at the international level and, in particular, asked regulators to be attentive to the impact of fair-value accounting on the industry. Finally, it urged the G20 to bring the now 10 year-old Doha Round of trade negotiations to a swift conclusion.

Established in 1894, the CLHIA is a voluntary association whose member companies account for 99 per cent of Canada’s life and health insurance business. The industry provides a wide range of financial security products such as life insurance, annuities (including RRSPs, RRIFs, and pensions) supplementary health insurance, long-term care insurance and critical illness insurance to about 26 million Canadians.

List of Associtions Signing on to G20 Letter:

  • American Council of Life Insurers (ACLI)
  • American Insurance Association (AIA)
  • Association of British Insurers (ABI)
  • Association of Bermuda Insurers and Reinsurers (ABIR)
  • Brazilian Insurance Confederation (CNSeg)
  • Canadian Life and Health Insurance Association (CLHIA)
  • Dublin International Insurance & Management Association (DIMA)
  • Dutch Association of Insurers (VVN)
  • European Insurance and Reinsurance Federation (CEA)
  • Inter-American Federation of Insurance Companies (FIDES)
  • General Insurance Association of Japan (GIAJ)
  • Group of North American Insurance Enterprises (GNAIE)
  • Insurance Bureau of Canada (IBC)
  • Insurance Council of Australia (ICA)
  • Life Insurance Association of Japan (LIAJ)
  • Property Casualty Insurers Association of America (PCI)
  • Reinsurance Association of America (RAA)

About CLHIA

Established in 1894, the CLHIA is a voluntary association whose member companies account for 99 per cent of Canada’s life and health insurance business. The industry provides a wide range of financial security products such as life insurance, annuities (including RRSPs, RRIFs and pensions) and supplementary health insurance to about 26 million Canadians. www.clhia.ca.