Ferma and its partners have called for a single database on tax and compliance issues to avoid the inconsistent interpretations of laws and regulations supplied by insurers around the world.

The database will attempt to pool all of the various interpretations and information in a consistent manner to provide a market standard by which everyone can abide.

It  will provide details of regulations on a territory-by-territory basis. The associations have confirmed that the main focus will be to provide global guidance on admitted and non-admitted insurers by jurisdiction.

This varies not only between countries, but also within some territories such as the US. It can also depend on the class of business being written. Failure to comply can result in fines, cancellation of cover, reputational damage and, in exceptional cases, imprisonment.

Other aspects of compliance to be captured by the database include pre-renewal information, including statutory obligations and restrictions, placement structure and information on insurance contracts, including details of mandatory forms and wordings.

Premium payment with details of local tariffs and payment protocols, claims notification processes and the consequences of non-compliance will also be included, said Airmic.

The associations are looking for firms able to create and then maintain the database. Airmic said it would also consider splitting the two functions so that interested parties can bid for one or the other.

Insurers, brokers, specialist data companies and international legal firms are among those to have shown an interest informally.

Other organisations are being kept abreast of developments, including the North American risk management association RIMS and the World Federation of Insurance Intermediaries.

No date has been set for completion of the project, but it is anticipated that work will begin next year.

“The wide level of market interest in this project shows what an important issue it is—one that unites underwriters, brokers and buyers,” said Airmic board member Helen Hayden. “The work will underpin the integrity of insurance programmes and ultimately their ability to deliver for clients.”

Crucially the scheme has the support of both insurer and broker associations in the London market.

“The international insurance industry contains myriad compliance requirements and keeping on top of these is no simple feat, said the IUA’s Chief Executive Dave Matcham. “A compliance database for global insurance programmes will undoubtedly prove a huge asset and the IUA fully supports its creation.”

LIIBA Chief Executive David Hough said: “We are happy to support this project. The creation of a single authoritative source of information has the potential to bring great benefits for our customers, brokers and carriers alike.”

The announcement by Airmic follows several meetings between risk management representatives, brokers and insurers interested in contributing to a single database over the last six months.

Ferma announced earlier in the month that focusing on the London market makes the project more practical in a short timeframe than aiming for global participation.

Julia Graham, joint Vice President of Ferma and Chief Risk Officer at multinational law firm DLA Piper, is upbeat about the progress made and the benefits the scheme will bring.

“We are quite positive that the work we are doing with Airmic will produce useful results for other Ferma members,” said Ms Graham.

She believes that because so many London market insurers are part of big international companies and London is involved in so many global programmes, the data that they can provide will cover many jurisdictions, enough to be valuable for corporate insurance buyers everywhere.

Ferma and Airmic are also hopeful that as they progress, those interested parties keeping tabs on developments, such as RIMS, will become part of the project.

Please sign up here to our full-time mailing list to ensure that you receive our weekly newsletter.

• More EU News
• More FERMA News
• More AIRMIC News
• More Insurance News