The March issue of the IAIS newsletter highlights that the 2020-2024 strategic plan of IAIS takes into account the role of supervision in insurance market development and, more broadly, sustainable economic development, in the wider context of achieving the IAIS mission. Policyholder protection and contribution to financial stability are fundamental to ensuring the sustainable involvement of the insurance sector in closing the protection gap.
The newsletter notes that application paper on proactive supervision of corporate governance has been published. The application paper draws on conclusions of the 2014 Self-Assessment and Peer Review of governance-related Insurance Core Principles (ICPs). At its meeting on February 27, the Executive Committee:
- Approved a memorandum on IAIS actions aimed at supporting the implementation of ComFrame
- Approved the project plan for finalizing the holistic framework for systemic risk by November
- Endorsed the launch of the 2019 global systemically important insurer (G-SII) data collection exercise
- Approved for publication the aggregate report on Phase 2 Implementation Assessment of G-SII Policy Measures (Liquidity Management Plan)
- Discussed a draft revised Financial Outlook 2020-2024
- Took note of, and commented on, the developments in fintech and the discussion in the IAIS Fintech Forum.
The newsletter also provides updates on meetings of different committees. The Implementation and Assessment Committee met on February 26 to deliberate on various issues, including a memorandum on IAIS actions aimed to support implementation of ComFrame and a memorandum on the implementation assessment workstream of the holistic framework for systemic risk. The Macro-prudential Committee met on February 26 and discussed the 2018 Global Insurance Market Report, proposals for special topics for the 2019 Global Insurance Market Report, documents pertaining to the 2019 G-SII data collection exercise, and several elements of IAIS holistic framework for systemic risk. At its meeting on February 28, the Accounting and Auditing Working Group discussed potential changes to ICP 20 as a result of the comments received on the consultation on a holistic framework for systemic risk in the insurance sector. The Working Group also continues to monitor implementation activities of IFRS 17.
Keywords: International, Insurance, Newsletter, ComFrame, ICP, Fintech, IAIS
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MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.
PRA published the policy statement PS19/20 on the final policy for extending coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balance.
EBA published the final draft implementing technical standards for disclosures and reporting on the minimum requirements for own funds and eligible liabilities (MREL) and the total loss-absorbing capacity (TLAC) requirements in EU.
EBA published an erratum for the phase 2 of technical package on the reporting framework 2.10.
EC published the Implementing Regulation 2020/1145, which lays down technical information for calculation of technical provisions and basic own funds.
FFIEC, on behalf of its members that include US Agencies such as CFPB, FDIC, FED, NCUA, and OCC, issued a joint statement that sets out prudent risk management and consumer protection principles for financial institutions to consider while working with borrowers.
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).