Application of Insurance Core Principles ICPs :

THE ICPs apply to Insurance Regulation in all jurisdictions regardless of the level of development insurance markets and the type of insurance products or services being regulated. Supervisors should have the flexibility to tailor supervisory requirements in accordance with nature, scale and complexity of individual insurers and actions so that they are commensurate with the risks posed by individual insurers as well as the potential risks posed by insurers to the insurance sector or the financial system as a whole.

The ICPs apply to the regulation of all insurers whether private or government-controlled insurers that compete with private enterprises, wherever their business is conducted, including through e-commerce. Where the principles do not apply to reinsurers, this is indicated in the text. The ICPs do not normally apply to the regulation of intermediaries but where they do, this is specifically indicated.

Insurance supervision within an individual jurisdiction may be the responsibility of more than one authority. For example, the body that sets out the legal framework for insurance supervision may be different from the body that implements it.

The regulator must operate in a transparent and accountable manner. It needs legal authority and the regulator to perform its tasks. The regulator must recognise that transparency and accountability in all its functions contribute to its legitimacy and credibility. The regulator should also establish clear timelines for public consultation and action, where appropriate.