IFIGS publishes its first research paper – “The Principles of Funding Insurance Guarantee Schemes”. As the international forum for IGS, IFIGS has examined the principles of funding, and published its findings.
The purpose of the paper is a) to inform stakeholders about the different funding methods chosen by various IGS to meet their needs and their stakeholders’ needs, and b) to provide the basis for constructive discussion and debate on funding for IGSs. The paper draws on the experience of its members, setting out the varying approaches taken by 21 IGSs across the world.
As well as identifying the design principles, the paper considers pre and post funding; funding sources, including back up funding; the assessment bases for calculating contributions, and risk based approaches; and the management by the IGS of funds.
IGSs operate across the world, serve the common purpose of consumer protection and are vital for the development of an appropriate financial stability system.