IAIS published its newsletter describing the activities and achievements this month. The June issue of the newsletter highlights the rising importance of fintech, discusses activities and progress in the area of ComFrame, and announces that the Eleventh Annual IAIS Global Seminar will be held in Moscow on July 26-27.
The IAIS Secretary General highlighted that the greatest demand coming from IAIS members has been for guidance on proactive supervisory practices that present a robust response to a fast changing environment—in particular, on fintech and cyber security risks. These are issues that impact supervisors from both developed and developing jurisdictions. The demand is less about setting new standards and more about understanding how to apply existing standards through supervisory practices that appropriately help monitor and respond to these new circumstances. IAIS has undertaken some important work on the emerging topics of fintech and cyber risk, but more can and will be done. Supervisory guidance on market conduct and financial inclusion aspects of fintech and supervision of cyber resilience of insurers is forthcoming this year. IAIS is also putting in place a FinTech Forum for the exchange of ideas and lessons among supervisory experts, helping to inform a more agile response.
Other key highlights this month are as follows:
- On 26-27 July, IAIS, along with stakeholders and others, will gather in Moscow, Russia, for the 11th Annual IAIS Global Seminar. Day One will feature panel sessions on ComFrame, including the Insurance Capital Standard (ICS); the IAIS systemic risk framework, including work on an activities-based approach to systemic risk assessment; and insurance in support of inclusive economic development. Day Two will turn to emerging risks by focusing on climate change and cyber risk, while also discussing the use of innovation facilities such as sandboxes as a regulatory tool.
- The Policy Development Committee met on June 13 and discussed the Draft Application Paper on the Composition and the Role of the Board; Draft Application Paper on Supervision of Insurer Cybersecurity; Draft revised ICP 6 (Changes in Control and Portfolio Transfer) and ICP 20 (Public Disclosure); and Key issues for ICS Version 2.0.
- The Capital, Solvency and Field Testing Working Group (CSFWG) met the week of May 22-25 to discuss the ICS Version 2.0 consultation document. The CSFWG also met in Washington DC on June 18-22 to finalize the draft ICS Version 2.0 consultation document. The consultation will be launched this summer for a three-month consultation period.
- The CSFWG continues to work on revisions to ICP 15 (Investment) and ICP 16 (Enterprise Risk Management for Solvency Purposes) and integrated ComFrame as a result of the consultation in November 2017. The revised ComFrame material will be part of the overall ComFrame consultation that will be released this summer.
- At its meeting on June 12-13, the Governance Working Group discussed the ComFrame material related to governance (integrated into ICP 5 (Suitability of Persons), ICP 7 (Corporate Governance), and ICP 8 (Risk Management and Internal Controls), in preparation for the public consultation of the overall ComFrame planned for August.
- At its meeting on June 14-15, the Insurance Groups Working Group discussed the ComFrame material integrated into ICP 9 (Supervisory Review and Reporting), ICP 10 (Preventive and Corrective Measures), ICP 23 (Group-wide Supervision), and ICP 25 (Supervisory Cooperation and Coordination).
Keywords: International, Insurance, Newsletter, ComFrame, ICP, ICS, FinTech, IAIS
PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.
IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.
MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.
BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.
FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.
PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.
EBA published an opinion following the notification by the French macro-prudential authority, the Haut Conseil de Stabilité Financière (HCSF), of its intention to extend a measure introduced in 2018 on the use of Article 458(9) of the Capital Requirements Regulation (CRR).
As part of a Research Bulletin on the recent policy-relevant work, ECB published an article that examines the lessons learned from past crises for nonperforming loan resolution in the post COVID-19 period.
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
ECB updated the guidance notes for reporting related to the statistics on holdings of securities by reporting banking groups (SHSG).