Global Insurance Supervisors Will Not Push Insurers Into High-Risk Markets, Says IAIS Chief

Photo Courtesy: Asia Insurance Review

Hongkong — Insurance regulators will not tell insurers where to do business, even as many disaster-hit communities remain uninsured, the head of the global supervisors’ body has said. Gerry Cross, Secretary General of the International Association of Insurance Supervisors (IAIS), said regulators will focus on finding out why gaps in cover exist and how to narrow them.

Cross was responding to a question from Asia Insurance Review at a media briefing during the IAIS Annual Conference in Hong Kong. The question was whether the IAIS could stop insurers from leaving high-risk areas.

The gap he described is the share of economic losses that insurance does not cover. He said it has several causes. Insurers may see too little return on some risks. Premiums may be unaffordable. Customers may not understand their own risks, may lack information about what insurance offers, or may not trust that claims will be paid.

Solutions depend on the location, Cross said, from floods in Bangkok to landslides in Nepal. The IAIS can help insurers, regulators and other partners set an affordable price for a risk. If that fails, they can look at reducing the risk itself, such as through flood defences built by local authorities. Regulators can support financial literacy training, and insurers can offer products that account for those risk-reduction measures.

At the same briefing, Insurance Authority CEO Clement Cheung said Hong Kong is moving from rule-making to enforcement. Referral arrangements are not illegal in themselves, he said, and some reflect real value. Problems start when referrals involve rebates, or when unlicensed people carry out regulated activities without proper procedures.

The Authority has published public guides, set a firm limit on referral fees and brought referral business under licensing and restrictions. It has also prosecuted brokers where it had enough evidence. Cheung said 2026 is a year of enforcement, meant to show that the rules are being applied.

Regulators at the briefing did not offer a single answer to under-insurance. Cross said progress depends on affordable pricing, risk reduction and public trust in claims. Cheung said it also depends on rules that are enforced. Together, their remarks suggest the protection gap will be narrowed by local measures, not regulatory orders.