Airmic publishes global compliance guide; CEO says international regulation too complex

International insurance regulators should do more to simplify the increasingly complex global compliance landscape, according to Airmic chief executive, John Hurrell. His comments came as Airmic published new guidance for members on how to ensure their multi-national insurance programmes comply – a common headache for risk managers.

"There is general awareness that it is getting so challenging for global companies to comply and that the regulators have to do something," John Hurrell said, speaking at a joint seminar with insurance information specialist Axco.

"I’m asking can they a) bring more harmony, for example by introducing the same format or a central technology platform; and b) look at free trade negotiations and be more realistic about allowing for differences in conditions and limits in global programmes."

Multi-national insurance compliance is a real challenge for Airmic members who have to ensure their programmes are in-line with a myriad of laws and regulations, many of which are uncertain and ambiguous. It can be extremely difficult to know if a programme is truly compliant, leaving policyholders vulnerable to gaps in their insurance as well as fines and penalties from local regulators.    

In response, Airmic has published a practical guide for members to help them successfully navigate the regulatory environment. The guide can be downloaded here.

In particular, the report aims to:

• Identify the core issues policyholders face and their associated responsibilities;
• Outline the consequences of non-compliance;
• Provide a checklist of questions the buyer should ask their insurer or broker;
• Explain how global compliance database Insight Risk Manager is a valuable tool.  

Paul Hopkin, Airmic’s technical director and author of the guide, said: “This issue is of huge importance for Airmic members and a cause of much concern. Their insurer may say they are compliant but often that only means the insurance company is compliant – not the whole insurance programme. I hope this guide helps our members cut through some of the noise and provide some structure to what can seem like a daunting task.”

Last year, Airmic and Axco launched Insight Risk Manager, a database of regulatory requirements, to provide Airmic members with guidance on the rules covering admitted and non-admitted insurances by jurisdiction. It now covers 70 jurisdictions and Axco plans to roll out the database to all other relevant countries in time for Airmic’s annual conference in June.

The database has proved very popular, but Hurrell emphasised that as important and necessary as it is, “it is a workaround, not a fix to the ultimate problem that the international system needs simplifying.”