Airmic plans a global compliance database

A project to produce the first jointly owned compliance database for global insurance programmes was announced by Airmic, the risk management association in London.

The database aims to provide detailed information on sectional regulations and will be created and maintained voluntarily by various firms. Airmic, who is administering the project, has confirmed the support if the International Underwriting Association (IUA), the London & International Insurance Brokers’ Association (LIIBA) and the European Risk Management Federation (FERMA).

Other organisations have until the end of January 2012 to express an interest. Airmic expects the support of the US Risk Management Association (RIMS) and the World Federation of Insurance Intermediaries (WFII) to be confirmed soon.

Admitted and non-admitted insurers by jurisdiction vary between countries and certain US territories. A failure to comply may lead to fines, reputational damage or cancellation of cover. The project will try to provide global guidance on the issue.

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

Airmic said global compliance was the “number two stay awake at night issue”, according to a survey conducted earlier this year.

The database will further capture pre-renewal information, placement structure, premium payment, claims notification and consequences of non-compliance across global territories.

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

Airmic technical director Paul Hopkin added: “This is an ambitious undertaking, but there is now a consensus that is is something best done collectively.”

The date for the completion for the project has not yet been set. Work is anticipated to begin next year.