Supervision of Virtual Insurance

Wil Dullemond

Advisor of the Board of the Dutch Pensions and Insurance Supervisory Authority

IAIS Annual ConferenceSantiago, Chile

10 October 2002

Supervisor’s role

• Unlicensed company:

protective & punitive action

• Licensed company:

on going supervision

• New company:

preventive supervision

Supervisor’s Principles

• Insurer responsible for internal control risks

(see also IAIS Issues Paper

“Risks to Insurers posed by Electronic Commerce”)

• Outsourcing not to prevent supervision

• Accessibility supervisor

• Effectiveness of interventions

Supervision developments

• From companies to aspects:

– System & Prudence: DNB/PVK

– Market conduct: Authority Fin. Markets

• (Self-)Regulation to inform policyholders:

– Financial attachment, code of conducts

• Supervision of intermediaries

Supervisor’s draft e-rules

• Insurer and supervisor to be identified

• Criteria for service spending

• Also written policyforms

• Policy conditions available on the internet

Supervisor’s experiences to date

• Small number of unlicensed activities

• New companies need long time & much funding

• Licensed companies face problems with

distribution

policy

• Supervisors need to act together to be effective