IAIS published the December 2019-January 2020 issue of its newsletter. This issue of the newsletter highlights that, in 2019, IAIS finalized the review and update of the Insurance Core Principles, adopted the ComFrame, adopted the holistic framework for assessment and mitigation of systemic risk, and reached a package of agreements on the Insurance Capital Standard (ICS). In 2020, IAIS will push ahead with the implementation of its new strategic plan, including the newly adopted post-crisis framework.
The newsletter points out that, in 2019, IAIS made significant strides in a number of important areas including fintech, climate risk, and sustainable finance and that IAIS will build on this work through its the new strategy. The Capital, Solvency and Field Testing Working Group will next meet in Basel on February 4-6 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.
Furthermore, IAIS participated in the fourth conference of the Arab Union of Insurance Regulatory Commissions in December 2019, in which it provided an update on the IAIS developments that are relevant to the MENA region. In January, IAIS provided an overview of the agreements from Abu Dhabi, which included the technical design of ICS Version 2.0 for the monitoring period, operationalization of the monitoring period, and the workplan and timeline for 2020-2024. Additionally, the G-SII Analysts Working Group met in December in Austin (Texas) to finalize the disclosure documents of the 2019 G-SII Data Collection Exercise and to support preparations for the individual insurer monitoring data collection exercise in 2020.
This edition of the newsletter highlights that, with the adoption of the new IAIS holistic framework on systemic risk, the activities that the Macroprudential Policy Committee (MPC) is expected to steer and oversee will evolve. To better align with the expected future activities, the MPC subcommittee structure was changed with effect from January 2020. The three existing MPC subcommittees are being replaced by two new subcommittees: the Macroprudential Supervision Working Group (MSWG) and the Macroprudential Monitoring Working Group (MMWG). The MSWG will address matters on macro-prudential supervision, including development and maintenance of related supervisory and supporting material, and coordinate with other working groups on related matters. The MMWG will be responsible for coordination of the annual global monitoring exercise, including the individual insurer and sector-wide monitoring, along with the macro-prudential assessment of trends, developments, and risks to the financial stability of the global insurance sector.
Keywords: International, Insurance, Newsletter, ComFrame, ICPs, ICS, Fintech, Macro-prudential Policy, ESG, Climate Change Risk, IAIS
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