Spain

This Technical Note (TN) provides an update on the Spanish insurance sector and an analysis of certain key aspects of the regulatory and supervisory regime. This FSAP is most supportive of the government’s announcement that the DGSFP (Directorate General of Insurance and Pension Funds) will become an independent insurance supervisory authority. This aligns with the recommendations of the IMF during its FSAP’s in both 2006 and 2012. As an agency of the Ministry of Economy, Industry, and Competitiveness (Ministerio de Economía, Industria, y Competitividad) (MdE) currently, DGSFP is subject to overall government budget constraints which directly affect the ability of the DGSFP to carry out its mandate. As an independent authority, it should have the authority to fund its programs on its own via fees levied on the industry, yet be accountable for those costs, to the stakeholders.