Control of insurance companies

Control of insurance companies

Control of insurance companies insurance companies are controlled today by the Prudential Supervisory Authority (CPA), which included the CAMA (insurance supervisory authority and mutuals at the beginning of 2010 ), former business control organization and insurance mutuals.

The ACP recalls the principles that an insurance company must respect to function properly, aims at their application and, in the event of non-compliance with these principles, intervenes to take safeguard measures.

The Prudential Supervisory Authority must ensure compliance with the calculation of provisions, compliance with the placement rules and the good general employment of the regulations. Each insurance company has a controller commissioner responsible for this mission.

As for the approval of insurance companies, it is issued today, still by the CEA (Committee of Insurance Companies (for details, see the "Accreditation of Insurance Organizations" page)
Rules of proper functioning of an insurance company enacted by the supervisory authorities

To work well, the insurance company must:
1) Have competent and honorable leaders,
2) have a good administrative and accounting organization, and have internal control procedures,
(3) constitute sufficient technical provisions relating to all of its activity, and whose amount is determined by the Accounting Directive,
4) represent these technical provisions by congruent assets (while there are no rule on free assets),
5) Have the minimum solvency margin, whose guidelines set the calculation methods.
Safeguard measures

In case of non-compliance with the prudential rules put in place by legislation, the supervisory authorities have put in place several safeguard measures.

Thus, if an insurance company no longer covers its commitments, the competent supervisory authorities may prohibit the free disposition of its assets.

If it no longer has the minimum of solvency margin, it must propose to the supervisory authorities a recovery plan that must be submitted to their approval. In this case, the supervisory authorities may also reserve the right to restrict or prohibit the insurance company the free disposition of its assets.

If the capital is lower than the minimum guarantee funds, the insurance company must propose to the supervisory authorities a recovery plan that must be submitted to their approval and, as in the previous case, may be restricted or prohibited the free. provision of its assets by the supervisory authorities.