IAIS Consults on Revised Insurance Core Principles 1, 2, 18, and 19
IAIS launched a public consultation on the revised Insurance Core Principles (ICPs) 1, 2, 18, and 19. ICP 1 concerns the objectives, powers, and responsibilities of a supervisor while ICP 2 addresses the governance structure and functions of a supervisor. Additionally, ICP 18 addresses the conduct of insurance intermediaries while ICP 19 covers conduct of the business of insurance to ensure customers are treated fairly, both before a contract is entered into and through to the point at which all obligations under a contract have been satisfied.
This consultation follows the thematic approach adopted by the IAIS in September 2015, which is aimed at ensuring a more efficient process of developing supervisory materials, with the management and development of supervisory materials by theme across the three tiers of standard-setting: ICPs, ComFrame, and Global Systemically Important Insurer Policy Measures, each building on the previous one. Only comments submitted via the web-based consultation tool will be considered toward finalization.
A further ICP consultation will be issued over this summer, as ICP 24 (on Macro-Prudential Surveillance and Insurance Supervision) is expected to be released at the beginning of August. As publicly announced in February 2017, as part of the next three-year cycle for reviewing its approach to systemic risk assessment scheduled to conclude in 2019, IAIS is developing an activities-based approach to systemic risk assessment in the insurance sector and has adopted a systemic risk assessment and policy workplan to put this into effect. This workplan, involving a public consultation at the end of 2018, includes finalizing any policy measures to address such potential systemically risky activities as part of ICPs and ComFrame (including ICS Version 2.0) to be adopted in 2019. While this work may have some implications for the existing ICPs, it is too early to tell how this may materialize.
Comment Due Date: August 29, 2017
Keywords: International, IAIS, Insurance, ICP, ComFrame, Supervision, Business Conduct
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