Requirements updated for insurers and insurance intermediaries www.montsame.mn
The Financial Regulatory Commision's resolution No. 25 of 2021 has amended the ‘Insurance Package’; based on:
measures reflected in policy and strategy documents,
the Insurance Core Principles (ICP) developed by the IAIS,
the regulatory environment (and experiences) of other countries, and
the problems facing the sector.
In particular, the Resolution approved the following additional new regulations:
Annex 1: Requirements and regulatory obligations for insurers and insurance intermediaries;
Annex 13: Requirements for Insurers’ Reinsurance Plans; and
Annex 18: List of documents require to apply for a license.
These changes offer simple and convenient ways for for individuals, legal entities, and license holders, to use licenses (and electronic registration and licensing practices that are compliant with international standards and current trends).
The principle of prior approval - for the marketing of insurance products to the public - has been updated to incorporate principle-based regulation, and to foster competition and access to the financial sector, as well as to expand the selection of products.
Insurers and insurance intermediaries must provide required information to clients prior to and after the conclusion of an insurance contact, in order to strengthen the regulation and protect the insurer's interests. Created conditions for the insurer's reinsurance activities to be managed, regulated, and implemented in an effective and proper manner.
Procedures described in the Resolution, include: details of the reinsurance plan, the insurer's risk management unit, the roles and responsibilities of the board of directors, possible risks due to reinsurance activities, and the criteria for selecting a reliable reinsurer.
These improvements should provide an opportunity to: grow a responsible and skilled workforce; and develop technology-based products and services, and an ethical insurance industry.
These legislative actions have entered into force, according to the General Administrative Law. In this regard, on 2 March, 2021, the Commission held an online meeting with members of the Mongolian Insurance Association, the Mongolian Insurance Brokers Association, and the Mongolian Banking Association (and their member organizations). During the meeting, the FRC provided information on the amendments, and provided guidance how to ensure implementation.
Published Date:2021-03-22