VIRTUAL%20INSURANCE

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VIRTUAL INSURANCE

• Edward Forshaw
• Manager, Insurance International Issues

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IAIS Papers

• Principles on the Supervision of Insurance
  Activities on the Internet
• Consistency of approach
• Transparency and disclosure
• Co-operation
• Risks to Insurers posed by Electronic Commerce

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The risks to insurers

• Strategic
• Operational
• Transaction
• Data security
• Connectivity
• Conduct of business

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Supervisory oversight

• Identify the risks posed by electronic commerce
• ensure that these risks are being well managed
• develop appropriate supervisory strategies

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Management of risks

• Corporate governance
• Systems and controls
• Outsourcing

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FSAs approach on outsourcing

• A firm must take reasonable care to organise and
  control its affairs responsibly and effectively,
  with adequate risk management systems
• Guidance on the steps an insurer should
  consider taking to ensure it retains an
  appropriate degree of control over, and is
  accountable for, any material outsourcing.

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Appropriate supervisory strategies

• Principles on Managing Risks Posed by Electronic
  Commerce
• Comments on Issues Paper
• Proposals regarding managing risks
• By end-December 2002