IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections. IAIS also published an Excel document on yield curves for the 2020 ICS data collection. The technical specifications documents include instructions for the data collection of the April 2020 ICS and Aggregation Method exercises of the Monitoring Period Project. The Aggregation Method technical specifications include a table that summarizes the process and timetable to be followed. Deadline for submission of the Aggregation Method data collection template and questionnaire by the group-wide supervisors is October 31, 2020. Analysis by the Analysis Team and discussions of summary results by IAIS are expected to take place from November 2020 to February 2021.
ICS Version 2.0 for the monitoring period consists of three document levels. The Level 1 document for the ICS Version 2.0 for the monitoring period sets out the overarching principles and concepts for the annual confidential reporting of the reference ICS and additional reporting during the five-year monitoring period. The Level 1 document should be read in conjunction with the more detailed specifications contained in the Level 2 document for ICS Version 2.0 for the monitoring period. Levels 1 and 2 together form ICS Version 2.0 for the monitoring period. The Level 1 document was published in November 2019 and the Level 2 document was published in March 2020. The ICS data collection package consists of material provided to Volunteer Groups to complete the annual ICS confidential reporting. The ICS technical specifications document (also referred to as Level 3) includes the Level 1 and Level 2 text and provides additional relevant information, consistent with the agreed Level 1 and 2 documents. The ICS technical specifications must be read in conjunction with the associated data collection template, questionnaire, and yield curve documentation. These documents do not replace or supersede the ICS Level 1 and Level 2 documents.
The Aggregation Method technical specifications must be read in conjunction with the associated data collection template and questionnaire documentation. The Aggregation Method technical specifications, by design, leave several policy questions open. These include, but are not limited to, the choice of scalars, the exact adjustments made, and the treatment of certain capital resources. Although several options for calculating the Aggregation Method have been included, the final method may differ from these options. While care should be taken to enter information for each legal entity correctly, it is of utmost importance that the values are reasonable in total. The terms and balances being requested, when possible, should be in accordance with the local jurisdictional statutory reporting. For entities that do not file statutory reports, local GAAP reporting should be used. The scope of the data collection includes the same entities that would be reported in the GAAP Balance Sheet under the ICS, as defined in the 2020 ICS Data Collection Technical Specifications.
Keywords: International, Insurance, ICS, Data Collection, Aggregation Method, GAAP, ICS Version 2, ComFrame, Monitoring Period Project, IAIS
Previous ArticleFED Updates Form FR 2052a for LCR Reporting by Banks
PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).
EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.
EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.
EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.
PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.
MAS published a statement guidance on dividend distribution by banks.
APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.
FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.
EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.
SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.