Austria: Publication of Financial Sector Assessment Program Documentation-Technical Note on Insurance Sector—Regulation, Supervision, Recovery, and Resolution Regime Prospects

March 2, 2020

Preview Citation

Format: Chicago

Austria: Publication of Financial Sector Assessment Program Documentation-Technical Note on Insurance Sector—Regulation, Supervision, Recovery, and Resolution Regime Prospects, (USA: International Monetary Fund, 2020) accessed September 19, 2024

Summary

This review provides an update on the Austrian insurance sector and an analysis of certain key aspects of the regulatory and supervisory regime. The note analyzes regulation and supervision in relation to key issues identified in previous Financial Sector Assessment Programs (FSAP), as well as material changes since the last FSAP. This note also covers the current situation and potential changes in the crisis management and early intervention framework of the insurance sector. It focuses on issues relevant to a long-standing policyholder protection mechanism, early intervention powers—existing and under discussion—and crisis management and resolution arrangements for insurance companies and groups. The analysis recommends that proper implementation of Solvency II needs ongoing validation and scrutiny by regulators, which could be at risk if supervisory resources with skills and expertise are not retained. Higher legal, reputational, and conduct risks are posing additional pressures to the life insurance sector. Market conduct supervision should be enhanced, with active use of enforcement powers in addition to the insights that studies launched by the government will provide.

Subject: Bank resolution framework, Financial crises, Financial institutions, Financial sector policy and analysis, Insurance, Insurance companies, Solvency, Stress testing

Keywords: Bank resolution framework, Conduct risk, Coverage ratio, CR, Enforcement case, FMA calculation, FMA contribution, FMA discussion, FMA enforcement case, FMA official, FMA resource, FMA staff, FMA stress test, FMA supervisor, Global, Information exchange template, Insurance, Insurance assets, Insurance companies, ISCR, Risk assessment, Solvency, Stress testing

Publication Details

Pages:

40
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2020/063
Stock No:

1AUTEA2020003
ISBN:

9781513535807
ISSN:

1934-7685

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