Strengthening Insurance Supervision in MENA Region
Project Development Objective (PDO)
The main objectives of this technical assistance project are (a) to assist the selected economies in conducting self-assessments of their supervisory systems against new global International Association of Insurance Supervisors (IAIS) standards to identify gaps in insurance sector regulation and supervisory practices and (b) to develop effective and time-bound country action plans to address key issues identified for each jurisdiction.
Despite notable growth over the past 10 years, the insurance sectors in Libya, Morocco, Tunisia, and West Bank and Gaza remain in need of improvement. The insurance sectors’ legal, regulatory, and supervisory frameworks do not fully comply with the IAIS Insurance Core Principles, and no detailed assessment of them has yet been undertaken. A significant problem in many of these economies, however, is the lack of understanding of the new international standards, the absence of knowledge on how to improve supervisory capacity, and the absence of a clear plan against which they can gauge regulatory progress in the insurance sector.
Issue 1: Accurate self-assessments of insurance supervision
To ensure that self-assessments are properly carried out, each economy requires guidance by an internationally recognized expert in insurance supervision. The 26 new core principles cover a multitude of supervisory topics.
Issue 2: Clear action plans (or roadmaps) for improving supervision
The project proposes to examine the supervisory weaknesses identified in the guided self-assessment process, prioritize them, and develop a time-bound plan for improving insurance supervision.
Issue 3: Stronger regional cooperation and information exchange among insurance supervisors
The Arab Forum of Insurance Regulatory Commissions is a young association that is currently exploring options for increasing supervisory cooperation and information exchange among economies in the Middle East and North Africa Region.
The project includes the following activities:
1. Self-assessments against IAIS core principles
The project is conducting a workshop to provide supervisory authorities in participating
economies with a detailed explanation of the self-assessment of regulatory and supervisory
architecture and market practices against the new IAIS Insurance Core Principles for effective
2. Development of action plans
The project is helping the supervisory authorities in selected member economies develop
effective and time-bound action plans to address the weaknesses and gaps in their regulatory
regime and supervisory capacity. The project is coordinating a second workshop after the
completion of individual economy action plans to present main findings of the self-assessment,
identify aggregate economy training needs, and harmonize regulatory and supervisory
practices across the region.
The key expected outcomes at the enabling environment level are as follows:
1. Improved insurance supervision capabilities and tools of recipient economies
2. Increased ability of the selected insurance commissions to understand the status of their
insurance regulation and supervision through the comprehensive and up-to-date view of the
level of implementation of IAIS core principles
3. Acquisition of detailed knowledge by authorities of tangible steps that can be taken to
rectify weaknesses in the level of implementation of the core principles