The Global Federation of Insurance Associations (GFIA) has sent a letter to the Group of Twenty (G20), saying that insurers can make a significant contribution towards economic growth so long as they are not hampered by what they consider to be unnecessary regulations.
The GFIA’s letter to the current Australian presidency of the G20 expresses support for its economic and infrastructure development goals, and says that the insurance industry can help the G20 achieve its 2% collective growth target over the next five years. However, insurers note that they face a higher level of global regulatory scrutiny than they did in the past and say they require more "appropriate and balanced regulation". In the letter, the insurers also asked that market barriers be removed and expressed disappointment that certain jurisdictions, including several G-20 members, have introduced new restrictive measures in their markets.
“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," comments Frank Swedlove, who is chair of the GFIA and also president of the Canadian Life and Health Insurance Association (CLHIA). "However to do so, we must not be constrained by unnecessary regulatory or other framework conditions.”