2013年-IMF国际货币组织全球_Belgium_Detailed_Assessment_of_Observance_of_Insurance_Core_Principles_112页_1mb

Belgium: Detailed Assessment of Observance of Insurance Core Principles

Executive Summary

The Belgian insurance industry is mature and highly concentrated, with composite insurers dominating the market. As of September 2011, the industry's total assets were €250 billion, significantly smaller than the banking sector's €1,185 billion. The top five life insurers held 71% of the assets, while the top five non-life insurers held 58% of non-life premiums. The top three insurance groups controlled over 60% of the total industry assets.

Belgian insurers were adversely affected by the global financial crisis, with continued challenges related to legacy assets and economic uncertainties in Europe. Life insurers have significant exposure to guaranteed high returns in their legacy portfolios, while non-life insurers face investment risks. The industry has seen a decline in the number of insurers since 2008, with a steady number of insurance groups.

The supervisory framework in Belgium has been updated since 2004, largely influenced by EU directives. The Twin Peaks structure was implemented in April 2011, separating micro-prudential and macro-prudential supervision between the National Bank of Belgium (NBB) and the Financial Services and Markets Authority (FSMA). This structure enhances checks-and-balances and supervision effectiveness.

The current regulatory framework shows a high level of observance with the Insurance Core Principles (ICPs), though some gaps remain, particularly in fit and proper requirements, director duties, public disclosures, and asset-liability management standards. The NBB has initiated improvements to the solvency regime ahead of Solvency II implementation, which is expected to enhance long-term sustainability.

There is a need for further improvements in the NBB's risk-based supervision, including the development of a baseline supervisory program, internal policies for inspecting outsourced functions, and a review of the effectiveness of external auditors and actuaries. The FSMA is advised to strengthen conduct-of-business (CoB) regulation and supervision, especially to address the large number of intermediaries and promote professionalism.

The insurance industry is heavily reliant on government and corporate bonds, with life insurers holding the majority of these. Insurers have increased their holdings of Belgian government bonds due to attractive yields. The NBB and FSMA are advised to ensure adequate resources for supervision, particularly with the implementation of Solvency II and cross-border insurance groups.

Core Content

• Industry Overview:

  • Belgian insurance industry is mature and concentrated.
  • Composite insurers dominate the market, accounting for over 90% of total assets.
  • The industry is smaller than the banking sector, with assets around €250 billion.
  • The top three insurance groups control over 60% of industry assets.
  • Insurance distribution is mainly through brokers and Bancassurance.

• Challenges:

  • Adversely affected by the global financial crisis.
  • Life insurers face significant exposure to legacy assets with guaranteed returns.
  • Non-life insurers are exposed to investment risks.
  • There is a decline in demand for life insurance due to household preference for liquidity.

• Regulatory and Supervisory Framework:

  • Shaped by EU directives and the Twin Peaks structure.
  • NBB supervises micro- and macro-prudential aspects.
  • FSMA is responsible for intermediary registration and conduct-of-business supervision.
  • The regulatory framework shows high observance with ICPs but has gaps in certain areas.

• Key Recommendations:

  • Regular review and enhancement of the practical implementation of the Twin Peaks structure.
  • A more principles-based approach to legal authority delegation to the NBB.
  • Strengthening the protection of policyholders through improved CoB regulation and supervision.
  • Ensuring adequate resources for NBB and FSMA to meet the demands of Solvency II and cross-border supervision.

Main Points

• Market Structure:

  • Composite insurers dominate with 23 in 2011.
  • Life insurance is more concentrated than non-life insurance.
  • Over 17,000 intermediaries exist, necessitating enhanced supervision.

• Assets and Liabilities:

  • Government and corporate bonds make up a significant portion of insurer assets.
  • Life insurers have a smaller asset base but similar concentration in fixed income securities.
  • Investment-linked policies (ILPs) account for about 15% of total premiums.

• Solvency and Risk Management:

  • The current solvency regime (Solvency I) underestimates risks.
  • The NBB has initiated reforms to enhance the solvency regime before Solvency II.
  • Liquidity risks are rising due to increased policyholder flexibility in new contracts.

• Regulatory and Supervisory Improvements:

  • The Twin Peaks structure improves checks-and-balances and coordination.
  • There is a need for more robust training and qualification requirements for intermediaries.
  • The FSMA should be empowered to establish enforceable rules for claims handling, market conduct, and fraud prevention.

Key Information

• Insurance Penetration and Density (2011):

  • Life insurance: 5.2% of GDP, €1,756 per capita.
  • Non-life insurance: 3.2% of GDP, €1,079 per capita.
  • Advanced markets: Life insurance penetration is 5.0%, non-life is 3.6%.

• Insurance Distribution Channels (2008):

  • Brokers: 34.6%
  • Assurfinance: 8.5%
  • Exclusive agents: 6.3%
  • Bancassurance: 30.2%
  • Direct sales: 17.5%
  • Others: 2.9%

• Assets Covering Technical Provisions (2011):

  • Life insurers: €8,430 billion (88% of liabilities).
  • Non-life insurers: €8,790 billion (61% of liabilities).
  • Composite insurers: €208,285 billion (86% of liabilities).
  • Total industry: €225,505 billion.

• Technical Provisions (TP) Trends (2007–2011):

  • Life TP decreased by 73.7%.
  • Non-life TP decreased by 25.3%.
  • Composite TP increased by 44.3%.
  • Total TP increased by 18.2%.