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Japan: Financial Sector Assessment Program-Detailed Assessment of Observance on Insurance Core Principles
Author:
International Monetary Fund. Monetary and Capital Markets Department
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2024: Issue 110
Language:
English
Publication Date:
13 May 2024
DOI:
https://doi.org/10.5089/9798400275166.002
ISBN:
9798400275166
ISSN:
1934-7685
Pages:
141
Keywords:
Japan FSAP; life insurer; General insurance rating Organization of Japan; earthquake insurance take-up; General insurance Association of Japan; Non-life insurance policyholder protection corporation; Insurance companies; Financial stability assessment; Insurance; Anti-money laundering and combating the financing of terrorism (AML/CFT); Solvency; Global
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This paper discusses Detailed Assessment of Observance of Insurance Core Principles for the Japan Financial Sector Assessment Program. The Financial Services Agency (FSA) is the integrated regulator of financial services, including insurance but accepting the insurance activities of cooperatives. Areas of observance include licensing requirements, cooperation with other supervisors and anti-money laundering and combating the financing of terrorism. Regulatory material contains extensive requirements for licensing of insurers and the FSA works closely with applicants to assess whether they meet requirements, even if final decisions on licensing are taken by a minister. The assessment identified significant gaps in the current framework of regulation and supervision. The assessment found that, partly because of resource constraints, the FSA’s approach to insurance supervision is largely reactive. The resolution framework and process of resolution for insurers needs to be carefully reviewed. Finally, there is a need to strengthen institutional arrangements for insurance supervision. As recommended in previous assessments, the FSA’s independence should be bolstered by the delegation of insurer licensing powers currently reserved to a minister.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund