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
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EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.