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© 2007 International Monetary Fund - page 33 / 41





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Nearly all insurance companies are foreign-owned and often part of well reputed

large insurance groups or financial conglomerates. Accordingly, the insurance supervisor

puts a lot of effort into international cooperation with home supervisors, in order to understand and communicate the possible vulnerabilities arising from a cross-border context.15


Premium growth per capita is in line with general expectations and can be

considered a consequence of general economic growth, rather than a condition thereof. The share of savings via life assurance is rather small; the modest size of the capital market does not seem to be a limiting factor to date. It is to be expected that the need for insurance

products will gradually grow for both life and non-life products. Stronger competition is expected via the distribution channels

General preconditions for effective insurance supervision


The institutional arrangements for insurance supervision have changed

considerably in recent years. Initially, insurance supervision was the responsibility of the

Ministry of Finance. It was later moved to the Financial Market Authority (FMA) which was, from January 2006, in turn absorbed into the NBS. The reasoning behind this latter move was that financial supervision could become more independent from government and that a more efficient allocation of supervisory resources across financial subsectors could be more easily

realized in an integrated supervisor.

  • 63.

    Further reorganization of supervision within the NBS is expected to take place in

  • 2007.

    In particular, regulatory resources are expected to be allocated functionally rather than

on the current sectoral basis. However, such a functional allocation of resources may not be completely compatible with legislation (bank, insurance, pensions, and security laws are distinct), and actual market structures. In order to achieve maximum advantages of functional and integrated supervision, it is therefore recommended that:

  • it be made clear to stakeholders in the financial sector that insurance supervision is still an important part of the NBS’ responsibilities under any new organizational arrangement; and

  • a fruitful cooperation between supervisors within the NBS should be based on disseminating to the staff the general supervisory purposes and expertise, such as

15 Generally, within the EU from where many of the parents of Slovak insurance companies originate, protocols between the supervisory authorities exist (i.e., the Helsinki Protocol and the Siena Protocol), underpinned by EU Directives, which allow for a timely and adequate flow of information between insurance supervisors. The NBS has the power to conclude formal information sharing agreements with non-EU insurance supervisory agencies, however such agreements are not a pre-requisite for information sharing.

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