ICP 10 Preventive Measures, Corrective Measures and Sanctions
10.1 |
The supervisor acts against individuals or entities that conduct insurance activities without the necessary licence.
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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.
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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.
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10.2 |
The supervisor requires preventive measures if the insurer seems likely to operate in a manner that is inconsistent with regulatory requirements.
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10.3 |
The supervisor requires corrective measures if the insurer fails to operate in a manner that is consistent with regulatory requirements.
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10.5 |
The supervisor escalates, including enforcing, preventive or corrective measures if its concerns are not addressed by the insurer’s actions.
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10.5.1 |
The supervisor should require further measures if its concerns with the insurer become worse, including if the insurer fails to take the actions in a plan. |
10.5.2 |
Supervisory measures should escalate in line with the supervisor’s concerns about the insurer. If the insurer’s inaction leads to an increased risk to policyholders, then the supervisor should respond by requiring stronger measures to mitigate this risk.
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10.5.3 |
Enforcement of preventive or corrective measures could involve the supervisor issuing a formal direction to an insurer to take particular actions or to cease conducting particular activities. It could also involve the supervisor seeking the assistance of other authorities, or the courts, to enforce a measure.
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CF 10.5.a |
The group-wide supervisor coordinates with other involved supervisors if the Head of the IAIG, or an insurance legal entity within the IAIG, fails to take action to address the group-wide supervisor’s, or other involved supervisor’s, identified concerns.
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CF 10.5.b |
Where an insurance legal entity within the IAIG fails to take preventive or corrective measures, as required by the involved supervisor, the group-wide supervisor informs the Head of the IAIG of that lack of compliance and assists the involved supervisor, to the extent possible, in achieving compliant outcome.
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