The International Association of Insurance Supervisors (IAIS) has published an issues paper on combating bribery and corruption.

The aim of the paper is to consider the risks that bribery and corruption pose to the insurance sector in particular to insurers and insurance intermediaries. The paper also considers various methods by which insurance supervisors can manage such risks effectively.

The paper considers:

• the relevance of bribery and corruption to the insurance sector and highlights a number of recent high-profile cases involving the insurance industry;
• the relationship between anti-bribery and anti-corruption measures and frameworks in place to combat money laundering and countering the financing of terrorism;
• the insurance supervisor’s role in combating bribery and corruption; and
• the approaches that have been adopted by insurance supervisors to combat bribery and corruption

The paper identifies that:

• the insurance sector is exposed to bribery and corruption;
• insurers’ and insurance intermediaries’ risk management and internal control systems need to be effective in preventing and detecting bribery and corruption risks;
• it is important for firms’ boards and senior management to ensure that appropriate systems are in place and appropriate resources are allocated to mitigate identified risks; and
• supervisors should require insurers and insurance intermediaries to have appropriate systems and controls in place and to take action where firms do not comply with these requirements.

A copy of the issues paper is available. http://bit.ly/1rSyDDn