Tokyo Executive Seminar on Insurance Regulation and Supervision

Abstract

The environment surrounding insurance regulators and supervisors is changing rapidly. As the business and markets evolve, regulation has to follow quickly in order to avoid becoming obsolete and irrelevant. Regulators now need to realize that the insurance sector is becoming a part of a broader industry, though it may retain some special aspects. This general trend should not necessarily end up with global financial conglomerates everywhere. Ultimately, corporate strategies on whether to be a conglomerate or instead focus on core business will be tested and judged by the market. When an institution does more than one line of business, cross-subsidy between the business lines should be an issue for financial supervisors.