By Roberto Carrilloroberto@dt.bh As insurance regulations trickle down from international standard setting bodies and become local regulations, a leading consultant has warned insurance companies to internalise regulations fully rather than just simply 'go through the motions'. KPMG Insurance Audit and Advisory Senior Manager Adeel Mushtaq said insurance companies in Bahrain and the region are currently investing in risk management. As with any investment, costs are involved. However, Mr. Mushtaq believes insurance companies should take risk management more seriously than simply trying to fulfil their regulators' demands. "While we see companies investing in risk management, this is all simply happening because of regulatory pressure," he said. However, risk is more the business of insurance companies than the regulator. But why then are companies not taking regulations seriously? "For the companies, they are more just costs of regulation. However, what insurance companies must understand is that this will be good for them in the end," Mr. Mushtaq noted. Insurance regulations now being applied in the region are similar to those seen in Europe. He said that the International Association of Insurance Supervisors (IAAS), which Bahrain is a member of, is where regulations are sourced from. "At present, Qatar and the UAE have led in applying the regulations of the IAAS. Bahrain has not yet made any significant move towards this but with the deadline set for this year, we can expect changes very soon. "My recommendation is to invest in risk management and understand the risk that companies are taking. We need to take most of new regulations not only as a tick box exercise. We are already investing in it. Why not know it fully, embrace it and internalise it?"