ICP 10 Preventive Measures, Corrective Measures and Sanctions

The supervisor:
  • requires and enforces preventive and corrective measures; and
  • imposes sanctions
which are timely, necessary to achieve the objectives of insurance supervision, and based on clear, objective, consistent, and publicly disclosed general criteria.

10.1

The supervisor acts against individuals or entities that conduct insurance activities without the necessary licence.

 


10.2

The supervisor requires preventive measures if the insurer seems likely to operate in a manner that is inconsistent with regulatory requirements.

 


10.3

The supervisor requires corrective measures if the insurer fails to operate in a manner that is consistent with regulatory requirements.

 


10.4
The supervisor:
  • requires the insurer to take actions that address the supervisor’s identified concerns;
  • periodically checks that the insurer is taking action; and
  • assesses the effectiveness of the insurer’s actions.


10.5

The supervisor escalates, including enforcing, preventive or corrective measures if its concerns are not addressed by the insurer’s actions.

 


10.6

The supervisor imposes sanctions on insurers and individuals proportionate to the breach of regulatory requirements or other misconduct.