General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
December 08, 2017

IAIS released an interim public consultation paper on an activities-based approach to systemic risk in the insurance sector. This is in accordance with the Systemic Risk Assessment and Policy Workplan of IAIS, which was announced on February 28, 2017 and welcomed by FSB. Comments are due by February 15, 2018.

The consultation focuses on the development of policy measures in the context of IAIS standards and does not cover questions of implementation of policy measures. The consultation: 

  • Provides an overview of the IAIS’s prior work on assessing and mitigating potential systemic risk in the insurance sector to help provide context for the current initiative
  • Discusses the concept of an activities-based approach and examines it relative to the IAIS’s existing entity-based approach as well as work by other standard-setters
  • Presents the approach that the IAIS intends to adopt to derive activities-based approach policy measures
  • Describes the key steps of this approach, which include the identification of potentially systemic activities, the consideration of existing policy measures within the IAIS’s policy framework, and the
  • process for assessing the residual risks or supervisory aspects that may warrant additional policy measures
  • Notes that the application of an activities-based approach will necessarily require the use of proportionality as well as the consideration of cost and benefit aspects, which could lead to application of materiality thresholds or other restrictions of the scope on application, when appropriate

In accordance with its Systemic Risk Assessment and Policy Workplan, IAIS is developing an activities-based approach to systemic risk in the insurance sector, as part of the next three-year cycle for reviewing its approach to systemic risk, which is scheduled to conclude in 2019. IAIS plans to launch a second public consultation on its final proposals by the end of 2018. The second consultation will be launched after IAIS considers comments on this interim public consultation, completes further work on the development of policy measures to address potential systemically risky activities in the insurance sector, and completes review of its assessment methodology for the identification of global systemically important insurers (G-SIIs).


Comment Due Date: February 15, 2018

Keywords: International, Insurance, Activities Based Approach, Systemic Risk, Policy Workplan, IAIS

Related Articles

HKMA Decides to Maintain Countercyclical Capital Buffer at 2.5%

HKMA announced that, in accordance with the Banking (Capital) Rules, the countercyclical capital buffer (CCyB) ratio for Hong Kong remains at 2.5%.

April 16, 2019 WebPage Regulatory News

EP Approves Agreement on Package of CRD 5, CRR 2, BRRD 2, and SRMR 2

The European Parliament (EP) approved the final agreement on a package of reforms proposed by EC to strengthen the resilience and resolvability of European banks.

April 16, 2019 WebPage Regulatory News

FDIC Consults on Approach to Resolution Planning for IDIs

FDIC approved an Advance Notice of Proposed Rulemaking (ANPR) and is seeking comment on ways to tailor and improve its rule requiring certain insured depository institutions (IDIs) to submit resolution plans.

April 16, 2019 WebPage Regulatory News

EP Resolution on Proposal for Sovereign Bond Backed Securities

The European Parliament (EP) published adopted text on the proposal for a regulation of the European Parliament and of the Council on sovereign bond-backed securities (SBBS).

April 16, 2019 WebPage Regulatory News

PRA Seeks Input and Issues Specifications for Insurance Stress Tests

PRA announced that it will conduct an insurance stress test for the largest regulated life and general insurers from July to September 2019.

April 15, 2019 WebPage Regulatory News

PRA Finalizes Policy on Approach to Managing Climate Change Risks

PRA published the policy statement PS11/19, which contains final supervisory statement (SS3/19) on enhancing banks’ and insurers’ approaches to managing the financial risks from climate change (Appendix).

April 15, 2019 WebPage Regulatory News

EBA Single Rulebook Q&A: First Update for April 2019

EBA published answers to nine questions under the Single Rulebook question and answer (Q&A) updates for this week.

April 12, 2019 WebPage Regulatory News

EIOPA Statement on Application of Proportionality in SCR Supervision

EIOPA published a supervisory statement on the application of proportionality principle in the supervision of the Solvency Capital Requirement (SCR) calculated in accordance with the standard formula.

April 11, 2019 WebPage Regulatory News

FED Updates Form and Supplemental Instructions for FR Y-9C Reporting

FED updated the form and supplemental instructions for FR Y-9C reporting. FR Y-9C is used to collect data from domestic bank holding companies, savings and loan holding companies, U.S intermediate holding companies, and securities holding companies with total consolidated assets of USD 3 billion or more.

April 11, 2019 WebPage Regulatory News

OSFI Finalizes Guidelines on Liquidity Adequacy and NSFR Disclosures

OSFI published the final Liquidity Adequacy Requirements (LAR) guideline and the net stable funding ratio (NSFR) disclosure requirements guideline.

April 11, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2929