G20 fell short for insurers

In a letter to the FT Patrick Liedtke secretary general of leading insurer group The Geneva Association has slated the G20 talks for failing the insurance industry.

His letter said:

“No difference was made between those financial activities that caused the global crisis and those that did not, notably insurance operations.

“The call on accounting standard-setters to work urgently with supervisors and regulators lacks the inclusion of the business sector. Accounting standards will only work if and when they reflect economic realities, which for insurance comprises a realisation of the special long-term nature of the business.

“The agreement that the senior leadership of international financial institutions should be appointed though an open, transparent, and merit-based selection process does not automatically ensure that the background of these experts will be as varied as the financial services sector itself. Currently too little insurance knowledge finds its way into these institutions, to the detriment of a balanced approach using the specialist knowledge that the sector has to offer, particularly on risk management.”