Austria: Publication of Financial Sector Assessment Program Documentation—Technical Note on Insurance Sector—Regulation, Supervision, Recovery, and Resolution Regime Prospects
IMF Staff Country Reports, March 2, 2020
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- Canonical URL
- Austria: Publication of Financial Sector Assessment Program Documentation—Technical Note on Insurance Sector—Regulation, Supervision, Recovery, and Resolution Regime Prospects
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Bibliographic details
- Published: March 2, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513535807.002
Scope and focus
- Provides an update on the Austrian insurance sector and analysis of key aspects of the regulatory and supervisory regime.
- Analyzes regulation and supervision relative to key issues identified in previous Financial Sector Assessment Programs (FSAP) and material changes since the last FSAP.
- Covers the current situation and potential changes in the crisis management and early intervention framework for the insurance sector.
- Focus areas include:
- A long-standing policyholder protection mechanism.
- Early intervention powers—both existing and under discussion.
- Crisis management and resolution arrangements for insurance companies and groups.
Key findings and concerns
- Proper implementation of Solvency II requires ongoing validation and scrutiny by regulators.
- There is a risk to effective Solvency II implementation if supervisory resources with skills and expertise are not retained.
- The life insurance sector is facing additional pressures from higher legal, reputational, and conduct risks.
- Market conduct weaknesses require enhancement of supervision and active enforcement.
Policy recommendations and supervisory actions
- Ensure ongoing validation and scrutiny of Solvency II implementation by regulators.
- Retain supervisory resources with necessary skills and expertise to avoid erosion of supervisory effectiveness.
- Enhance market conduct supervision, including active use of enforcement powers.
- Leverage insights from studies launched by the government, while complementing them with robust enforcement activity.
Thematic relevance and topics covered
- Bank resolution framework
- Financial crises
- Financial institutions
- Financial sector policy and analysis
- Insurance and Insurance companies
- Solvency and Stress testing
Source: IMF Staff Country Report — "Austria: Publication of Financial Sector Assessment Program Documentation-Technical Note on Insurance Sector—Regulation, Supervision, Recovery, and Resolution Regime Prospects" (March 2, 2020).
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- 1autea2020003