Increased Insurance Regulation Likely, International Association Says

Insurers should expect more burdensome regulation as a result of the global financial crisis, according to a survey of insurance regulators and other experts conducted by the Geneva Association.

Released last week, the survey of 46 insurance experts from around the world was conducted during a March meeting in Montreux, Switzerland, of the association’s research group on regulation, supervision and legal issues. Among the respondents were 15 heads of regulatory agencies.

The survey showed that 80 percent of the experts expect the regulatory burden for the insurance market to increase, and more than 67 percent said the global financial turmoil could lead to “over-regulation” of the market.

“The survey results reveal that over-regulation is a real-threat scenario for the insurance industry, a concern shared by some regulators and supervisors,” said Patrick M. Liedtke, general secretary and managing director of the Geneva, Switzerland-based group, in a statement.

Filed by Michael Bradford of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.