Our regulation and supervision of the insurance sector remains based on the same ‘Three Pillars’ philosophy we apply when supervising registered banks and the other financial sector participants: self, market and regulatory discipline. However, over the next year or so we expect to consult with the industry on a range of changes that will look to strengthen each pillar.
Self-discipline The first pillar, self-discipline, refers to the strength of governance, processes, and internal controls of a firm. Our view has not changed over the years: directors are ultimately responsible and accountable for ensuring that a firm operates prudently.