IAIS published a report that presents aggregate assessment results and observations from the peer review process on the topic of corporate and risk governance. The peer review covered the Insurance Core Principles (ICPs) on licensing (ICP 4), suitability of persons (ICP 5), corporate governance (ICP 7), and risk management and internal controls (ICP 8). The report includes a synthesis of useful practices for standards where observance can present challenges. The Annexes to the report include a description of the peer review process, a list of the participating IAIS members by category, and a list of aggregated results of observance level by region.
Overall, the observance rate per ICP has increased since the last assessment in 2014.
- For all members, ICP 4 was assessed as either Observed (29 members) or Largely Observed (41 members). FSB jurisdictions and other OECD jurisdictions had the highest level of observance.
- For a large majority of members, ICP 5 was assessed as Largely Observed (51 members) and Observed (17 members); it was Partly Observed for only two members. The observance of ICP 5 was high among participating authorities and has increased compared with the results of the assessment in 2014, when ICP 5 was assessed as Observed for only 10 from 69 jurisdictions.
- For all participating authorities, ICP 7 has been assessed as Observed (11 authorities), Largely Observed (54 authorities), or Partly Observed (5 authorities). The overall conclusion is that observance of this core principle is high.
- For most members, ICP 8 was assessed as either Observed (29 members) or Largely Observed (35 Members); it was Partly Observed for only a small minority of members (5 members).
The assessment questionnaire, which was developed by IAIS Expert Team, consisted of 117 questions covering the 9 standards of ICP 4, 6 standards of ICP 5, 11 standards of ICP 7, and 8 standards of ICP 8. Out of the 70 authorities that participated in the peer review process, 20 responses came from IAIS members in FSB jurisdictions and 30 responses came from IAIS members in the Organization for Economic Co-operation and Development (OECD) jurisdictions. The participants in the peer review process were asked to respond to open questions and to share their supervisory practices. Based on the answers received, the Expert Team has drawn on useful practices as guidance for other jurisdictions. As part of the report, the aggregated results by standard and jurisdiction is also available; however, this information is not publicly available, is confidential, and is disclosed to IAIS members only.
Keywords: International, Insurance, ICP 4, ICP 5, ICP 7, ICP 8, Governance, Observance of ICP, Peer Review, Internal Controls, ICPs, IAIS
Previous ArticleFED Updates Form and Instructions for FR Y-14Q Data Collection
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.
The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.