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.

 

10.1.1    
The supervisor should have in place mechanisms to identify when unlicensed insurance activity is being carried out. Examples of such mechanisms include monitoring of media and advertising, review of consumer complaints or encouraging industry and other stakeholders to notify the supervisor of suspicious activity.

10.1.2    
Where unlicensed activity is identified, the supervisor should act to address the issue. Examples include requiring the unlicensed entity to apply for a licence, seeking court orders to require the unlicensed entity to stop the activity, informing law enforcement authorities of criminal and/or civil concerns, imposing sanctions on the individual/entity or publicising the fact that the individual and/or entity is/are not licensed to conduct insurance activities.

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.