International regulation is at a key stage in its evolution, according to the Global Federation of Insurance Associations (GFIA).

Major issues include international capital standards and a planned common supervisory framework that risks being overly prescriptive.

“The industry must be ready to speak clearly and responsibly,” Chairman Frank Swedlove says in the group’s first annual report.

“We also need to strengthen our relationships with other groups that represent parts of the insurance sector, such as the Geneva Association and the International Institute of Finance.”

The GFIA was created in October last year when associations such as the Insurance Council of Australia joined forces to provide a unified industry voice. It now has 35 members representing 87% of global insurance premiums.

The federation warns the “increasingly detailed” International Association of Insurance Supervisors supervision framework could “place unnecessary costs on groups and fail to take into account that a group’s business mix, risk appetite and management structure are unique”.

It also wants greater flexibility in risk appetite principles proposed by the Financial Stability Board.