The January issue of the IAIS newsletter highlights that Financial Stability Institute (FSI) published two insurance-related FSI Insights, which concern regulating and supervising the clouds and proportionality in the application of insurance solvency requirements. The IAIS Secretary General noted that 2019 will be a milestone year for the Association, as it is expected to finalize a part of the post-crisis reform agenda and transition to the new five-year strategic plan. The strategic plan comprises a range of emerging themes such as fintech, cyber risk, climate risk and sustainable development, and an increased focus on the implementation of agreed reforms. The reform agenda to be finalized involves the development phase of ComFrame and the holistic framework for mitigating systemic risk in the insurance sector.
The newsletter highlights that IAIS is hosting an Insurance Capital Standard (ICS) stakeholder event on February 01, 2019. The meeting will provide members and stakeholders with the opportunity to provide feedback on the ICS prior to the finalization of ICS Version 2.0 for the monitoring period. The newsletter further notes that, on January 15, IAIS held a successful stakeholder event on holistic framework for systemic risk in the insurance sector in Miami. The event was intended to provide an additional forum for discussion during the formal consultation period that closed on January 25. Additional key updates for this month are as follows:
- The Executive Committee met on January 13-14 in Miami and discussed issues on the finalization of the post-crisis reform agenda and forward-looking subjects related to the next five-year strategic plan. Specifically, the Executive Committee discussed the workplan for the holistic framework on systemic risk, including the global monitoring exercise, policy-measures, and implementation assessment. The Executive Committee also discussed the ComFrame and ICS workplan for 2019.
- The Accounting and Auditing Working Group met on December 5-6 in London. Members discussed the work of the Monitoring Group, held a dialog on IFRS 17, and hosted a call-in session for interested stakeholders. The Working Group is also expected to continue to monitor IFRS 17 implementation activities.
- At its meeting on December 6-7 in Basel, the Insurance Groups Working Group discussed 2018 public consultation comments on ComFrame material in Insurance Core Principle (ICP) 9 on supervisory review and reporting; in ICP 10 on preventive measures, corrective measures, and sanctions; in ICP 23 on group-wide supervision; and in ICP 25 on supervisory cooperation and coordination.
- The Macro-prudential Policy and Surveillance Working Group held its first quarterly meeting in Hyderabad, India. The focus of this meeting was on the finalization of the 2018 Global Insurance Market Report (GIMAR), a first discussion of the proposed 2019 GIMAR special topics, the further development of the key insurance risks and trends survey to support the IAIS sector-wide monitoring, and the review of ICP 24 on macro-prudential surveillance and insurance supervision.
Keywords: International, Insurance, Newsletter, ComFrame, ICP, Systemic Risk, Fintech, IFRS 17, IAIS
Previous ArticleIASB Publishes Summary of the December 2018 Meeting of ASAF
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.