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
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.