The Financial Stability Board’s risk management framework must consider the diversity of insurance business models, according to the Global Federation of Insurance Associations.

The proposed framework should not be overly prescriptive, the 35-member federation – which includes the Insurance Council of Australia – also says.

The comments come in response to the stability board’s consultation on supervision of “too big to fail” financial institutions.

The federation says the framework presumes certain corporate structures and “sets forth a more rigid and detailed approach than is either necessary or desirable”.

The International Association of Insurance Supervisors and national supervisors “are doing extensive work on all elements of risk management while being flexible and reflective of the realities and diversity of the insurance sector”.

The federation also calls for a clear statement protecting sensitive information, arguing many elements of an insurer’s risk appetite framework involve strategic material.

Giving supervisors access to confidential board minutes may intrude too deeply into companies’ affairs, it says.