In fact, we are in the process of fully adopting a consolidated and risk-based supervision approach. International best practice on banking supervision has adopted this approach primarily because of its more forward-looking orientation rather than the after-the-fact view of traditional supervision.
This has now been in place for insurers for more than a year, so let me take an opportunity for a few reflections. Our risk-based supervisory framework starts with an allocation of resources based on impact: that is, for insurers, the impact of failure on policy holders.