The supervisor has a documented framework which outlines its approach for supervisory review and reporting. The supervisor reviews periodically that this framework remains effective and adequate.

As part of the supervisory framework, the supervisor develops supervisory plans which set priorities and determine the appropriate depth and level of off-site monitoring and on-site inspection activity.

The supervisor reviews outsourced material activities or functions to the same level as non-outsourced material activities or functions.

• establishes documented requirements for the regular reporting of qualitative and quantitative information from all insurers licensed in its jurisdiction;
• defines the scope, content and frequency of the information to be reported;
• sets out the relevant accounting and auditing standards to be used;
• requires that an external audit opinion is provided on annual financial statements;
• requires insurers to report on any material changes or incidents that could affect their condition or customers;
• requires insurers to correct inaccurate reporting as soon as possible; and
• requires more frequent reporting and/or additional information from insurers as needed.

The supervisor monitors insurers on an ongoing basis, based on communication with the insurer and analysis of information obtained through supervisory reporting as well as market and other relevant information.

The supervisor sets the objective, scope and timing for on-site inspections of insurers, develops corresponding work programmes and conducts such inspections.

The supervisor discusses with the insurer as soon as practical any relevant findings of the supervisory review and the need for any preventive or corrective measures.