Insurers could help the G-20 to achieve its desired growth if ‘correct’ regulation is in place, according to a letter sent by the Global Federation of Insurance Associations (GFIA) to the G-20 Presidency.
The letter surmises that as a major source of long-term investment, insurers can provide significant support to the G-20 in achieving its aim of 2 percent collective growth over the next five years. However, it states that policymakers must ensure that the right regulatory and framework conditions are in place.
Frank Swedlove, chair of the GFIA, said: “Long-term sustainable growth needs long-term investment. The insurance industry, with $28.6 trillion of assets under management in 2012 and annual new investments of $4.6 trillion, is well placed to play a major role. However to do so, we must not be constrained by unnecessary regulatory or other framework conditions.”
GFIA supports a recent B-20 call for the establishment of a protocol for international rule-making processes, which would better engage the private sector to ensure rules are fit for purpose and fully take account of their impact on the real economy.
The need for market barriers to be removed is another issue tackled in the letter, with specific reference to limitations on the conduct of cross border reinsurance.
Swedlove added: “The GFIA urges the G-20 to remain committed to open markets and should certainly oppose any new trade restrictive measures.”
This letter follows a meeting with the GFIA and many of the key people and bodies involved in the Australian G-20 presidency including the Parliamentary Secretary to the Treasurer, the Governor of Reserve Bank, the Australian Treasury, and the Department of Foreign Affairs and Trade, earlier in the year, to discuss the important role the insurance industry can play in Australia’s 2014 Presidency of the G-20.
Insurers, G-20, GFIA