Insurers told to understand risks, business to thrive well
INSURANCE supervisors must understand the nature of the business and its associated risks in order to provide timely assistance and intervention, an Autoriti Monetari Brunei Darussalam (AMBD) senior official said yesterday.
In her opening address for the Asean Insurance Training and Research Institute (AITRI)- Toronto Centre Intermediate Workshop on Onsite and Offsite Examination for insurance supervisors, Executive Director of Insurance/Takaful and Capital Market Supervision at the Regulatory Department in AMBD, Hjh Mahani Hj Mohsin, said that insurance supervisors must stay equipped with proper knowledge to do their roles well.
"One of our (supervisors') main roles is to ensure that our insurance companies are solvent and thriving," she said during the event which took place at the Rizqun International Hotel.
"In today's global financial environment, it is imperative that all stakeholders are able to identify and manage their risks appropriately," she said.
She also said that, generally, most insurance supervisors face constraints such as optimal use of resources, which is a subject matter that would be addressed in the workshop.
Meanwhile, AITRI Senior Vice President Hairul Hilmi Ramlee said that content and learning approaches have been improved to suit the emerging challenges and complexities of insurance markets across the globe.
He said that the workshop has been conducted annually since 2007 with Toronto Centre and is an important programme for capacity building for the region's insurance supervisors.
Over 20 insurance supervisors from 12 different countries including from ASEAN attended the four-day workshop which is held behind closed doors.
Hairul said that the participants are expected to learn about effective risk-based supervision, improve technical knowledge in on and off site examinations and acquire international best practices.
The programme stated that the workshop will address topics such as risk concepts, operational management, net risk and will also include case studies.
AITRI is an non profit organisation set up by the ASEAN countries to provide capacity building programmes through training and research for supervisors including those from the private sector.
The Toronto Centre is a Canada-based organisation which seeks to promote financial stability and access globally by building the capacity of financial sector regulators and supervisors, particularly in emerging markets and low income countries.
In an April report, the co-chair of the US-ASEAN Business Council (USABC) financial services working group pointed out that major projects in the region could be funded by insurance.
Juan Andrade, who is also the chief operating officer (COO) of ACE Overseas General, said that funds generated from insurance could finance large-scale projects such as infrastructural developments.
Its purpose as a safety net could also help stimulate business activity as entrepreneurs are more prepared to take risks which could lead to increased economic activity.