1. The Case for Self-regulation of Market Conduct
“Market conduct is specific to culture, legislation and taxation”
Arguments in favour:
Main distribution method
Level of awareness of consumers
Level of state provision of social security
Countered by:
Growing regional markets (eg EU, Internet)
Globalisation of major insurance companies

2. Market Conduct – A personal view
What are the Options?
Global standards
Global principles and local standards
Global principles, local guidance and strong corporate governance

3. Market Conduct – A personal view
2001 Average
2002 Average
Best in class
Worst in class
Business Unit
“Buy-in”
Recruitment of quantity not quality
Fewer, more detailed business investigations
Outsourcing of non core functions
Risk based approach
Compliant culture
100% fact find checking
Continuous Improvement
Company A 2001
Company A 2002
Clarity of accountability and responsibility
Goal congruence
Past business reviews
Standard KPI’s used
Remuneration for compliant behaviour
Specialist KPI “Dashboards”

4. Market Conduct – A personal view

5. Questions and Comments
Market Conduct
Questions and Comments

6. Closing remarks
The implementation of Principle 11 and the Principles paper will need to be addressed in the near future
The current regulatory models have drawbacks
The use of Self-regulation and Internal Market Conduct Assessment deserves further study.