Issues Paper on the Regulation and Supervision of Mutuals, Cooperatives and Other Community-based Organisations in Increasing Access to Insurance Markets
This paper gives an overview of Mutuals, Cooperatives and other Community-based Organizations (MCCOs). It focuses on the regulation and supervision of MCCOs.
The scope of the paper includes MCCOs acting as risk carriers as well as those with limited roles such as provision of administrative or distributive services. The paper addresses issues related to key defining characteristics of MCCOs, namely member ownership, democracy, solidarity, serving a defined group and purpose and entitlement to profit. It examines the definition of MCCOs, studies their role in providing access to insurance services and discusses Insurance Core Principles (ICPs) specific to regulation and supervision of MCCOs. These include:
- Supervisory arrangements and on going supervision;
- Licensing and suitability of persons for ownership;
- Changes in control and portfolio transfers;
- Corporate governance and internal control;
- Prudential requirements;
- Capital adequacy and solvency;
- Markets, consumers and intermediaries;
- Consumer protection;
- Information disclosure and transparency.
The paper includes an annexure with examples of roles played by MCCOs from various countries.
