IAIS published a report on the 2019 global systemically important insurer (G-SII) identification process. The IAIS analysis is focused on identifying G-SIIs, which are insurers whose distress or disorderly failure would potentially cause significant disruption to the global financial system and economic activity. BIS and IAIS collaborate to conduct a data collection exercise to enable IAIS to assess the potential systemic importance of insurers in the global context (the G-SII Project). IAIS also published the instructions that supplement the guidelines for G-SII data collection exercises by setting out the specificities of the 2019 G-SII data collection exercise conducted for the G-SII Project.
IAIS used the 2016 G-SII Assessment Methodology to complete the 2019 G-SII data collection exercise. The 2016 G-SII Assessment Methodology adds an extra level of transparency to the annual G-SII identification process for both participating insurers and the public. The data template used for the G-SII assessment process this year has been provided in the Annex to the report. In 2019, IAIS collected data from 52 insurers. Two Insurer Pool participants in 2018 were excluded in 2019 and two new participants were added in 2019. Pursuant to paragraph 83 of the 2016 Assessment Methodology, IAIS will release several pieces of information to the public and these are:
- The aggregate totals for the denominators for each Phase II indicator
- The Absolute Reference Values (ARV) used for the Phase II indicators, including the numerator, denominator, and any other factors used to establish the Absolute Reference Value
- The data template and instructions used in the G-SII assessment process
- The data elements from the data template that comprise the formulae for the Phase II indicators
- Analysis of aggregate trends in the Insurer Pool
- A description of the nature of the additional analysis undertaken
The internal processes of IAIS for the analysis of the data collected pursuant to the guidelines and the instructions have been described in the IAIS G-SII Assessment Methodology. For a complete overview of data collection and processing in connection with the G-SII Project, the guidelines, instructions, and G-SII Assessment Methodology should be read together. Additional granular data items were collected as part of the 2019 data collection exercise, in comparison with the 2018 exercise. This data collection will support IAIS in the finalization of the holistic framework for systemic risk in the insurance sector.
Keywords: International, Insurance, G-SII, G-SII Project, Instructions, Data Collection, Identification Process, Assessment Methodology, IAIS
Previous ArticleExpert Group of EC Issues Recommendations on Framework for Fintech
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
EBA published the annual report on asset encumbrance of banks in EU.
MAS revised the guidelines that address technology and cyber risks of financial institutions, in an environment of growing use of cloud technologies, application programming interfaces, and rapid software development.
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.