There is insufficient information publicly available regarding Syria's compliance with the Insurance Core Principles (ICPs) issued by the International Association of Insurance Supervisors (IAIS). In July 2005, pursuant to the Insurance Regulatory Act No. 43 of 2005, the insurance sector opened up to private companies, ending the monopoly held by the state-owned Syrian Insurance Company. The International Monetary Fund's (IMF) 2007 Article IV Consultation underlines that the Insurance Regulatory Act does not explicitly set limits on foreign ownership in private insurance companies. Eight private insurance companies began operations in 2006, and one Islamic insurance company was licensed in 2007. On October 18, 2007, as stated on the Ministry of Finance (MoF) website, the Syrian Insurance Supervisory Commission (SISC) issued decision No. 127/100 that includes a regulation for institutional arbitration in the insurance and reinsurance companies. The regulation aims to establish a transparent and effective insurance market in Syria. The SISC was established within the MoF as the regulatory and supervisory authority for the insurance industry in Syria. The SISC is also a member of the IAIS.

General Overview

The Syrian Insurance Supervisory Commission (SISC), within the Ministry of Finance (MoF), acts as the insurance regulatory and supervisory authority in Syria. The SISC is a member of the International Association of Insurance Supervisors (IAIS). However, there is insufficient information publicly available regarding Syria's compliance with the Insurance Core Principles issued by the IAIS.

In July 2005, pursuant to the Insurance Regulatory Act No. 43 of 2005, the monopoly held by the state-owned Syrian Insurance Company (SIC) officially ended as the insurance sector opened up to private companies. The International Monetary Fund's (IMF) 2007 Article IV Consultation underlines that the Insurance Regulatory Act does not explicitly set limits on foreign ownership in private insurance companies. Eight private insurance companies began operations in 2006, and one Islamic insurance company was licensed in 2007. According to the IMF's 2006 Selected Issues report, while the SIC still operates in the insurance industry, it only provides limited products, and accounts for less than 1 percent of GDP in terms of insurance premiums. On October 18, 2007, as stated on the MoF website, the SISC issued decision No. 127/100 that includes a regulation for institutional arbitration in the insurance and reinsurance companies. The regulation aims to establish a transparent and effective insurance market in Syria. The regulation further stipulates requirements with regards to the board of insurance companies, namely the appointment of non-executive and independent members.

As a result of weak insurance supervision in developing countries, a project was launched jointly in October 2002 by the IAIS, the World Bank, the Financial Sector Vice Presidency, and the Stability Institute to develop a Core Curriculum on Insurance Supervision (CCIS), as noted on the Financial Sector Reform and Strengthening (FIRST) Initiative website. The CCIS project is under the oversight of an IAIS Task Force reporting directly to the Executive Committee of the IAIS, which is composed of active senior insurance supervisors, representatives from the IAIS, and the World Bank. In June 2005, as part of the second CCIS seminar, the FIRST Initiative launched a "Regional Training Seminar for Insurance Supervisors" project for the Middle East & North Africa (MENA) region, which was completed in November 2006. The aim of the project was to strengthen insurance supervision in the MENA region through the training of insurance supervisors. Although participant feedback called the seminar successful, objectives related to insurance supervision were not achieved.

The Principles

ICP 1 Conditions for effective insurance supervision

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 2 Supervisory objectives

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 3 Supervisory authority

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The SISC, within the MoF, acts as the insurance regulatory and supervisory authority in Syria. However, there is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 4 Supervisory process

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 5 Supervisory cooperation and information sharing

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On August 4, 2007, as stated on the MoF website, the SISC signed a cooperation agreement for insurance training and rehabilitation with the Bahrain Institute for Financial and Banking Studies--a not-for-profit institute providing training in banking, finance, insurance, management, marketing and information technology. Nevertheless, there is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 6 Licensing

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 7 Suitability of persons

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 8 Changes in control and portfolio transfers

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 9 Corporate governance

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On October 18, 2007, as stated on the MoF website, the SISC issued decision No. 127/100 that includes a regulation for institutional arbitration in the insurance and reinsurance companies. The regulation stipulates requirements with regards to the board of insurance companies, namely the appointment of non-executive and independent members. Nevertheless, there is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 10 Internal control

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 11 Market analysis

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 12 Reporting to supervisors and off-site monitoring

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 13 On-site inspection

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 14 Preventive and corrective measures

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 15 Enforcement or sanctions

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 16 Winding-up & exit from the market

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 17 Group-wide supervision

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 18 Risk assessment and management

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 19 Insurance activity

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 20 Liabilities

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 21 Investments

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 22 Derivatives and similar commitments

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 23 Capital adequacy and solvency

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 24 Intermediaries

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 25 Consumer protection

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 26 Information, disclosure & transparency towards the market

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 27 Fraud

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There is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.

ICP 28 Anti-money laundering/ Combating the Financing of Terrorism

II

Pertaining to regulation, supervision and monitoring, the Middle East & North Africa Financial Action Task Force's 2006 report cites as a primary limitation, inadequate anti-money laundering and combating the financing of terrorism supervision, monitoring and on-site inspections of the duties of the SISC. However, there is insufficient information publicly available addressing Syria's compliance with this principle as revised in 2003 by the IAIS.