Another feature of the assessment process is that “the framework described by the Insurance Core Principles is general. Supervisors have flexibility in adapting it to the

domestic context” (IAIS 2003a, 50). This characteristic leads the assessor to consider whether an element may be inadequate in the context of a more complex aspect of the market, even though it may well be reasonable in another market or may have been reasonable when it was established in times when the market was less complex. Box 5.3 illustrates the application of flexibility in the context of ICP 19, which requires insurers to provide adequate monitoring and evaluation of insurance risks and to ensure adequate premiums and reinsurance to manage the risks.

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