These objectives, which are directly relevant to any consideration of the opportunities and risks relating to Insurtech & innovation, require that insurance firms: have sufficient financial resources including under a plausible but severe stress; have sustainable, capitally accretive business models, over the long-term; are well governed, have an appropriate culture, with effective risk management and control arrangements in place, which are commensurate with their nature, scale and complexity; can recover if they get into difficulty, and if they cannot, are resolvable in an orderly manner without significant externalities or taxpayer costs; and fully meet reporting and disclosure requirements.
Observations So, if this is what I expect of insurance firms, what do I see? In my initial engagements, and reflecting on the diligent work of my colleagues in insurance supervision, it is clear that there is work to be done across the sector to meet these expectations (recognising that recovery and resolution is a work in progress from a regulatory perspective).