IAIS has launched a public consultation on revisions to the IAIS supervisory material. In particular, IAIS is seeking feedback on draft revised IAIS glossary, draft ComFrame assessment methodology, changes in the introduction to Insurance Core Principles (ICPs) and ICP 7 (Corporate Governance) for consistency with ComFrame development, and draft revised ICP 22 (Anti-Money Laundering and Combating the Financing of Terrorism). The package released for public consultation also includes draft supervisory material related to the holistic framework for systemic risk in the insurance sector. Feedback is requested by August 15, 2019. IAIS is planning for the adoption of ComFrame and all revised ICPs at the Annual General Meeting in November 2019.
As part of the finalization of the holistic framework by November 2019, IAIS is seeking feedback on revisions to the following:
- ICP 9 on supervisory review and reporting and ComFrame in ICP 9—Additional language is proposed to be included in guidance material only.
- ICP 10 on preventive measures, corrective measures, and sanctions—Additional language is proposed to be included in guidance material only
- ICP 16 on enterprise risk management (ERM) for solvency purposes and ComFrame in ICP 16—Additional ERM requirements are developed targeted at liquidity risk, macroeconomic exposure, and counterparty exposure. These requirements are proposed to be applied in a proportionate manner to Internationally Active Insurance Groups (IAIGs) and other insurers as necessary.
- ICP 20 on public disclosure—A new standard is proposed to be added to this ICP, covering a requirement on insurers to disclose information on liquidity risk.
- ICP 24 on macro-prudential supervision—ICP 24 is revised, taking into account also the outcome of the 2017 interim public consultation. Since the revisions to the ICP also included some restructuring, track changes compared to the 2017 version are not made visible in the package.
The consultation document also presents revisions based on comments received during the 2018 public consultation on overall ComFrame. These revisions have been endorsed by the Executive Committee and are published for information.
Comment Due Date: August 15, 2019
Effective Date: November 2019
Keywords: International, Insurance, ComFrame, ICP, Systemic Risk, Liquidity Risk, Assessment Methodology, IAIS
Sam leads the quantitative research team within the CreditEdge™ research group. In this role, he develops novel risk and forecasting solutions for financial institutions while providing thought leadership on related trends in global financial markets.
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