Spain: Financial Sector Assessment Program-Technical Note-Insurance Sector Supervision and Regulation
IMF Staff Country Reports, November 13, 2017
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- Spain: Financial Sector Assessment Program-Technical Note-Insurance Sector Supervision and Regulation
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Bibliographic details
- Published: November 13, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484327104.002
Summary findings
- The Technical Note discusses findings and recommendations from the Financial Sector Assessment Program (FSAP) for Spain in the areas of insurance sector supervision and regulation.
- The Spanish insurance market is complex owing to the presence of large numbers of insurance groups.
- The supervisory culture in the Directorate General of Insurance and Pension Funds (DGSFP) appears to be reactive or compliance focused.
- Current supervisory emphasis is insufficiently qualitative; there is a need to complement quantitative checks with qualitative review of insurers’ key methods and assumptions.
- Supervisory verification should include proportionate verification of technical provisions and capital requirements.
- The DGSFP should develop areas that are central to the Solvency II framework, including governance and risk management.
Key recommendations
- Shift supervisory focus from predominantly reactive/compliance checks to a mix of qualitative and quantitative review that assesses insurers’ methodologies and assumptions.
- Implement proportionate verification procedures for technical provisions.
- Strengthen oversight of capital requirements through targeted supervisory review.
- Develop supervisory capabilities and frameworks in governance and risk management aligned with Solvency II principles.
Thematic focus and technical terms
- Subjects covered: Expenditure, Financial institutions, Financial sector policy and analysis, Insurance, Insurance companies, Labor, Pension spending, Pensions, Solvency, Systemic risk.
- Keywords cited in the Note: budget constraint; cash flow; CR; DGSFP supervision; distribution insurance market; Europe; government budget constraint; Group supervision; II regime; Insurance; Insurance companies; insurance creditor; insurance intermediary; interest rate; ISCR; life insurer; Pension spending; Pensions; risk management; Solvency; Solvency II; supervisory Risk Assessment Framework.
Document and access metadata
- Publication date: November 13, 2017
- Series: IMF Staff Country Reports
- Report context: Findings and recommendations emanating from the Financial Sector Assessment Program for Spain.
Source: Spain: Financial Sector Assessment Program-Technical Note-Insurance Sector Supervision and Regulation (IMF Staff Country Reports, November 13, 2017).
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- Country Report