Germany: Financial Sector Assessment Program Technical Note—Insurance Regulation And Supervision
IMF Staff Country Reports, August 3, 2022
Source details
- Canonical URL
- Germany: Financial Sector Assessment Program Technical Note—Insurance Regulation And Supervision
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Bibliographic details
- Published: August 3, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400217654.002
Overview
- The Financial Sector Assessment Program (FSAP) conducted a focused review of insurance regulation and supervision in Germany.
- This technical note (TN) provides an update on the insurance sector and highlights risks and vulnerabilities.
- The analysis focuses on supervision within the scope of the Federal Financial Supervisory Authority (BaFin)’s mandate.
- The TN comments on progress in respect of the implementation of recommendations made by the previous FSAP and offers further recommendations to strengthen the regulatory and supervisory regime.
- Publication date: August 3, 2022.
Key aspects analyzed
- Supervisory powers, independence, and resources.
- The solvency framework.
- Supervision.
- Changes of control and resolution.
Findings related to BaFin and oversight
- BaFin is the federal German insurance supervisor.
- BaFin is subject to oversight by the Federal Ministry of Finance (MoF), which is accountable to the Federal Parliament.
- The TN highlights risks and vulnerabilities in the insurance sector and discusses progress on prior FSAP recommendations (specific progress details are within the full TN).
Policy recommendations and supervisory priorities
- The TN offers further recommendations to strengthen the regulatory and supervisory regime (specific recommendations are contained within the full TN).
- Priority areas implicitly emphasized by the TN’s analytical focus:
- Enhancing supervisory powers, independence, and resources.
- Strengthening the solvency framework.
- Improving supervisory practice and oversight.
- Clarifying and enhancing arrangements for changes of control and resolution.
Content in this bundle
- Technical Note — Germany: Insurance Sector