1

Activities of the OECD

VII ConferenceOn Insurance Regulation and Supervision in Latin

America

Lisbon, 24 April 2006

Kurt Chr. SchneiterChair

Insurance and Private Pensions Committee of the OECD

2

Overview

1. OECD in general:

What is it, what are its mission and goals ?

How does it work ?

2. IPPC in particular

Characteristics

Main activities

3

What is the Organisation for Economic Co-operation and Development (OECD) ?

An Organisation of 30 member countries committed to democracy and the market economy

A provider of comparative data, analysis and forecasts

so that governments can:

- compare policy experiences

- seek answers to common problems

- identify good practice

- co-ordinate policies

4

OECD Member Countries

An organisation with global reach

5

Working with countries around the world

Economies with which the OECD has working relationships

6

The OECD’s mission

Article 1 of the OECD Convention:

Support economic growth

Boost employment

Raise living standards

Maintain financial stability

Assist other countries’ economic development

Contribute to growth in world trade

7

OECD’s way of working

Analysis

Data Collection

Discussion

Peer reviews,multilateral surveillance

Implementation

Decisions

8

Who drives the OECD work?

CouncilOversight and strategic direction

Representatives of member countries and of the European Commission; decisions taken by consensus

Committees

Discussion and implementationRepresentatives of member countries and of countries with Observer status work with the OECD Secretariat on specific issues

Secretariat

Analysis and proposals

Secretary-GeneralDeputy Secretaries-GeneralDirectorates

Annual budget: 336 million euros funded by member countries

9

CouncilOversight and strategic direction

Representatives of member countries and of the European Commission; decisions taken by consensus

Insurance and Private Pensions Committee

Discussion and implementation

Member countries’ delegations include representatives from the private sector

Directorate for Financial and Enterprise Affairs

Analysis and proposals

10

Insurance and Private Pensions Committee (IPPC)

International forum for insurance regulators, supervisors and private sector representatives

Active for more than 40 years

OECD Member countries represent around 95 percent of the world insurance market

30 Members and 5 Observers (Israel, Russian Federation, IAA, IAIS, IMF)

2 Working groups:private pensions, governmental experts

11

IPPC: General objectif

Help Members and non-Members in developing

efficient, open and sound market-oriented insurance andpensions systems

based on high levels of transparency, confidence andintegrity

by promoting international co-operation

to improve awareness and understanding – especiallyamong policymakers – of major insurance and pensionsissues through

market and policy analysis, data collection andbenchmarking good practices

Insurance is a foundation of all economic activity

12

Main areas of IPPC activities:

1. liberalisation of insurance markets

2. private pensions

3. private health insurance

4. governance

5. financial education

6. Mitigation and compensationof large-scale risks includingterrorism risks

7. monitoring of insurance marketand its regulatory framework

8. dissemination of statistical data

9. co-operation with non-membereconomies

13

1. Foster liberalisation

Pursuing efforts at further liberalisation and regulatory reform in the field of insurance and private pension

Inventory and analysis of obstacles Options to accelerate liberalisation Revision of the OECD Codes of

liberalisation

14

2. Supporting the growing role

of private pensionsThe OECD’s role on private pension systems:

Source of comparable, timely, reliable information, data collection activities

Regulatory / standard-setting work, practical, effective policy advice, especially on regulat-ion, with a view to promoting benefit security

High-quality, independent analytical work

15

3. Private Health Insurance

Assess role of PHI as it complements and interacts with public health insurance schemes

Analysis of variation in market size / populat-ion coverage and of performance

Identify factors underpinning differences in performance

Identify useful government interventions and regulatory practices

PHI related issues such as ageing / longevity, medical malpractice etc.

16

4. Governance: OECD standard setter for Governance issues

Revised corporate governance principles 2004 Council Recommendations in April 2005:

Guidelines for Pension funds governanceGuidelines for Insurers’ governance

Need for specific guidance related in particular to governance of insurers and pension funds owing to:

their role as major institutional investors their fiduciary role for consumers the asymmetry of information stemming from complexity and diversity of products the diversity and complexity of structure of ownership and organisation

17

5. Financial Education

Increasing role of private pensions, insurance and financial products in providing social welfare benefits to citizens

Growing complexity of insurance and pension products and of their regulation

Larger responsibility given to individuals in the management of their long-term savings

Panel

18

6. Optimise the management of large-scale risks OECD High-level Conference on Catastrophic Risks and Insurance, 22-23 November 2004

Two publications on Emerging risks and Environmental risks and insurance, publication of a wide-ranging study on terrorism risk

Definition of terrorism risk / coverage of terrorism risk: role of the insurance sector, financial markets and governments

International network to deal with compensation and mitigation of large-scale risks

Panel

19

7. Monitoring of insurance marketand its regulatory framework

Forum for consultations among Member countries

Keeping informed of the activities carried out in other international bodies, coordination of work with these bodies

***

Information – the indispensable basis for furtheranalysis, proposals, decisions, development

Panel Finite Reinsurance andPanel The effects of Ageing on Insurance

20

8. Dissemination of statistical data

Yearly publication of insurance statistics

Pensions statistics

Contribution to PHI Statistics

Reliable and comprehensiv insurance statistics are not only the foundation of a sound insurance business and supervision but also an important element for any governmental decision on market policy

***

21

9. Co-operation with non-member economies

Policy dialoguewith non-Member economies,encouraging the implementation of

best principles and practices and providing related assistance

22

Insurance and Private Pensions

OECD materials and instruments

are available at

www.oecd.orgwww.oecd.org/daf/fin