The Bank for International Settlements Financial Stability Institute published FSI Insights No 72 on resourcing the “next generation” of insurance supervision, examining how authorities identify, fund and allocate human, financial and technological resources. Drawing on a survey of 23 insurance supervisors, the paper finds that resourcing challenges are intensifying as mandates expand and supervision becomes more risk-based and technology-driven, increasing the importance of holistic resource management and stable, flexible funding models. The analysis links these challenges to long-standing public sector constraints, including uncompetitive remuneration relative to the private sector, public-sector pay and hiring rules, rigid recruitment processes, high turnover, ageing workforces and “key person” risk. Funding is most commonly sourced from industry fees and levies, with some authorities supported by central banks or government budgets and a small number using investment income, and the paper stresses the need for predictable income, multi-year planning and the ability to scale resources or access supplementary funding in crises. It also flags trade-offs in using external experts to fill skills gaps, particularly in emerging markets and developing economies, and highlights that suptech and other technology investments can be resource-intensive upfront but may deliver longer-term efficiency gains when combined with a clear mandate and risk-based allocation of supervisory effort. Most surveyed authorities anticipate higher headcount and budget needs over the next three years, driven by initiatives such as transitions to risk-based supervision and capital regimes, digital transformation and data supervision, AML/CFT and resolution work, operational resilience, technology and AI oversight, and IFRS implementation, although some expect flat or reduced staffing due to budget limits or restructuring.
Bank for International Settlements - Financial Stability Institute 2026-02-11
Bank for International Settlements Financial Stability Institute highlights staffing and funding constraints for insurance supervisors based on a 23-authority survey
The Bank for International Settlements Financial Stability Institute released FSI Insights No 72, highlighting intensified resourcing challenges for insurance supervision as mandates expand and become more risk-based and technology-driven. Based on a survey of 23 insurance supervisors, the report emphasizes the need for stable funding models and addresses public sector constraints, noting that most authorities foresee increased headcount and budget requirements over the next three years.