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The Insurance Sector of an economy handles a vast amount of public funds. The contract of insurance is based on the principle of good faith. Insurance policyholders believe that the insurance policies that are sold in the market are viable and true. The policyholder also expects that a policy-claim is settled in a fair and efficient manner.
The Insurance sector has customers from all segments of the society. Regulation becomes necessary to protect the public interest. Towards this end, the management of Insurance Company should be responsible and responsive, safe and sound.
The proper and healthy performance of the insurance sector of an economy becomes necessary to protect public interests of a nation. Therefore, the Insurance Regulatory Authority lays down the performance conduct standards for the Insurance Company. The authority lays these standards through regulations and directives. Insurance regulations exist all over the world and are now considered to be important towards achieving financial stability and encouraging savings of a country and in the international arena.
The first international regulatory authority to take care of the development and health of the insurance sector came from the United States of America. The USA formed a National Association of Insurance Commissioners (NAIC). The NAIC was formed by the coming together of different State Regulators.
The next major international development was the formation of the International Association of Insurance Supervisors (IAIS). This association,which grew from the NAIC has its headquarters in Basle in Switzerland.
Therefore, Country wise and International Insurance regulations have evolved. These regulations control the registration of Insurance companies, ensure that management is fit and proper; price Insurance product after thorough research has been made, ensure that claims are settled effectively and ensures that the Insurance Company maintains the solvency margin requirements.
The Insurance Sector of an economy handles a vast amount of public funds. The contract of insurance is based on the principle of good faith. Insurance policyholders believe that the insurance policies that are sold in the market are viable and true. The policyholder also expects that a policy-claim is settled in a fair and efficient manner.
The Insurance sector has customers from all segments of the society. Regulation becomes necessary to protect the public interest. Towards this end, the management of Insurance Company should be responsible and responsive, safe and sound.
The proper and healthy performance of the insurance sector of an economy becomes necessary to protect public interests of a nation. Therefore, the Insurance Regulatory Authority lays down the performance conduct standards for the Insurance Company. The authority lays these standards through regulations and directives. Insurance regulations exist all over the world and are now considered to be important towards achieving financial stability and encouraging savings of a country and in the international arena.
The first international regulatory authority to take care of the development and health of the insurance sector came from the United States of America. The USA formed a National Association of Insurance Commissioners (NAIC). The NAIC was formed by the coming together of different State Regulators.
The next major international development was the formation of the International Association of Insurance Supervisors (IAIS). This association,which grew from the NAIC has its headquarters in Basle in Switzerland.
Therefore, Country wise and International Insurance regulations have evolved. These regulations control the registration of Insurance companies, ensure that management is fit and proper; price Insurance product after thorough research has been made, ensure that claims are settled effectively and ensures that the Insurance Company maintains the solvency margin requirements.
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