Featured Product

    IAIS Publishes Newsletter for February 2020

    February 24, 2020

    IAIS published the newsletter for February 2020. This issue of the newsletter highlights that IAIS is developing the Insurance Capital Standard (ICS) to create a common language for supervisory discussions of group solvency of Internationally Active Insurance Groups to enhance global convergence among group capital standards. At its November meeting in Abu Dhabi, the IAIS Executive Committee agreed on ICS Version 2.0, which is to be used during a five-year monitoring period. The feedback received will be used for further improvement. The issue also highlights that IAIS included cyber risk among the strategic themes of its 2020-2024 strategic plan and financial outlook, particularly under the High Level Goal 1, which aims to assess and respond to issues that present opportunities, challenges, and risks to its mission.

    The newsletter highlights that during the monitoring period, ICS will be used for confidential reporting and discussion among supervisors in supervisory colleges. The expectation regarding participation in the monitoring period is that, at a minimum, the same groups that participated in ICS field testing exercises will participate in confidential reporting, with the number of additional participants increasing over time. In addition to the feedback from supervisors, IAIS will also consider feedback from stakeholder engagement, a public consultation, and the results of an economic impact assessment—all of which could result in changes to ICS Version 2.0. During the monitoring period, IAIS intends to maintain the same level of engagement with stakeholders that it had during field testing.

    The Capital, Solvency and Field Testing Working Group also met in Basel from February 04-06 to discuss the monitoring period and the Level 2 document for ICS Version 2.0 for the monitoring period, based on parent committee decisions in November. An update was provided on the work plan for the aggregation method additional data collection. The group will next meet in Tokyo on March 24-26, 2020 to discuss the confidential reporting package for ICS Version 2.0 for the monitoring period and the 2020 aggregation method additional data collection. Confidential reporting of ICS Version 2.0 for the monitoring period and the aggregation method additional data collection will both be launched in late April 2020, with a launch workshop in Basel on May 19.

    The newsletter highlights that cyber risk underwriting has a huge potential and, therefore, the IAIS Executive Committee has established a small group that is mandated to develop proposals on where IAIS could focus its efforts. This small group will present the findings of its work to the Executive Committee in February 26, including recommendations for a future work plan in this area. Additionally, the Financial Stability Institute cross-sectoral policy implementation meeting on climate risk assessment in the financial sector took place on February 20-21, 2020 in Basel. The meeting consisted of six panel sessions related to climate risk assessment, ranging from more strategic issues such as sequencing of regulatory and supervisory measures to technical discussions such as climate risk modeling. Views were also exchanged on how existing risk management requirements on banks and insurers can be tailored to capture their climate risk exposures. Moreover, the Accounting and Auditing Working Group will meet on February 26-27 in Basel to discuss, among other issues, the proposed amendments of IASB to IFRS 17 and audit quality issues related to the implementation of IFRS 17.

     

    Keywords: International, Insurance, Newsletter, ICS, ICS Version 2, Cyber Risk, IFRS 17, Insurance Contracts, Cyber Underwriting, Climate Change Risk, ESG, IAIS

    Featured Experts
    Related Articles
    News

    BIS Quarterly Review Discusses Developments in Fintech and ESG Space

    BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.

    September 20, 2021 WebPage Regulatory News
    News

    BCBS to Consult on Supervisory Practices for Climate Risks by Year-End

    The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards

    September 20, 2021 WebPage Regulatory News
    News

    OCC Identifies Operational Risk Deficiencies in MUFG Union Bank

    The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.

    September 20, 2021 WebPage Regulatory News
    News

    EC Rule on Contractual Recognition of Write Down and Conversion Powers

    The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.

    September 17, 2021 WebPage Regulatory News
    News

    ECB to Consider Climate Risks When Reviewing Collateral Framework

    In a response to the questions posed by a member of the European Parliament, the President Christine Lagarde highlighted the commitment of the European Central Bank (ECB) to an ambitious climate-related action plan along with a roadmap, which was published in July 2021.

    September 17, 2021 WebPage Regulatory News
    News

    SRB Provides Update on Approach to Prior Permissions Regime

    The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.

    September 16, 2021 WebPage Regulatory News
    News

    APRA Issues Further Guidance on Application of Securitization Standard

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.

    September 16, 2021 WebPage Regulatory News
    News

    ACPR Publishes Corrective Version of RUBA Taxonomy

    The French Prudential Control and Resolution Authority (ACPR) published the corrective version of the RUBA taxonomy Version 1.0.1, which will come into force from the decree of January 31, 2022.

    September 15, 2021 WebPage Regulatory News
    News

    Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics

    The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.

    September 15, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.

    September 15, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7487