The perceived lack of insurance expertise and voice at the Financial Stability Board has sparked terror that the board's designation of global systemically important insurers (G-SIIs) may prove unfair or uninformed. National regulators such as the Prudential Regulation Authority (PRA) are subject to similar concern, but the FSB ultimately decides the designations. Insurers' minds are concentrated on the issues afresh because the International Association of Insurance Supervisors is consulting on policy measures for the G-SIIs.
"It's the [Financial Stability Board] and the national authority in consultation with the IAIS that will produce designation of G-SIIs. The IAIS plays a minor role," George Brady, deputy secretary, IAIS, told delegates at a recent Lloyd's international regulation conference
Noting that the FSB's experience was largely in the area of banking, he said: "I am not concerned, but everyone should be aware of the constitution of those who make the decisions."
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