Cover IMF Staff Country Reports
Austria: Publication of Financial Sector Assessment Program Documentation-Technical Note on Insurance Sector—Regulation, Supervision, Recovery, and Resolution Regime Prospects
Author: International Monetary Fund. Monetary and Capital Markets Department
Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2020: Issue 063
Language:
English
Publication Date:
02 Mar 2020
DOI:
https://doi.org/10.5089/9781513535807.002
ISBN:
9781513535807
ISSN:
1934-7685
Pages:
40
Keywords:
ISCR; CR; risk assessment; coverage ratio; FMA resource; enforcement case; FMA discussion; FMA staff; FMA supervisor; information exchange template; insurance assets; FMA stress test; FMA contribution; FMA calculation; FMA enforcement case; FMA official; conduct risk; Insurance companies; Insurance; Solvency; Stress testing; Bank resolution framework; Global
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This review provides an update on the Austrian insurance sector and an analysis of certain key aspects of the regulatory and supervisory regime. The note analyzes regulation and supervision in relation to key issues identified in previous Financial Sector Assessment Programs (FSAP), as well as material changes since the last FSAP. This note also covers the current situation and potential changes in the crisis management and early intervention framework of the insurance sector. It focuses on issues relevant to a long-standing policyholder protection mechanism, early intervention powers—existing and under discussion—and crisis management and resolution arrangements for insurance companies and groups. The analysis recommends that proper implementation of Solvency II needs ongoing validation and scrutiny by regulators, which could be at risk if supervisory resources with skills and expertise are not retained. Higher legal, reputational, and conduct risks are posing additional pressures to the life insurance sector. Market conduct supervision should be enhanced, with active use of enforcement powers in addition to the insights that studies launched by the government will provide.
Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund