Insurance Core Principles Summary

Insurance Core Principles Summary

The Insurance Core Principles (ICPs) provide a globally accepted framework of principles, standards and guidance for the regulation and supervision of the insurance sector. They were developed by the International Association of Insurance Supervisors (IAIS) and apply to its member jurisdictions regardless of the level of development and sophistication of their insurance markets and the type of insurance products or services supervised. Initially adopted in 2011 and amended four times (the most recent amendments coming in 2019) the ICPs contain 24 principles

Insurance supervisors use the ICPs as a benchmark to assess the quality of their regulatory and supervisory frameworks and to help inform future work priorities. They are also used by the International Monetary Fund and the World Bank as part of their Financial Sector Assessment Program to evaluate the effectiveness of countries' systems of insurance supervision. This Executive Summary outlines the preconditions needed for effective supervision, and the structure and scope of the ICPs that are deemed essential to support a sound supervisory system.

Preconditions for effective insurance supervision The ICPs identify five preconditions that can have a bearing on the conduct of supervision. While these preconditions are generally outside the control of supervisory authorities, supervisors should work with the government and applicable organisations to address any identified concerns.

Even though the numbering of the ICPs ends at ICP 25, there are currently 24 principles. This is because the former ICP 11 – Enforcement was merged with ICP 10 – Preventive and Corrective Measures and Sanctions, and to avoid confusion, the IAIS decided not to change the existing numbering of the other ICPs.