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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PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.
EBA published a report that sets out the final draft regulatory technical standards specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR).
EBA updated the list of other systemically important institutions (O-SIIs) in EU.
BCBS published two reports that discuss transmission channels of climate-related risks to the banking system and the measurement methodologies of climate-related financial risks.
UK Authorities (FCA and PRA) welcomed the findings of FSB peer review on the implementation of financial sector remuneration reforms in the UK.
PRA and FCA jointly issued a letter that highlights risks associated with the increasing volumes of deposits that are placed with banks and building societies via deposit aggregators and how to mitigate these risks.
MFSA announced that amendments to the Banking Act, Subsidiary Legislation, and Banking Rules will be issued in the coming months, to transpose the Capital Requirements Directive (CRD5) into the national regulatory framework.
EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.
OSFI launched a consultation to explore ways to enhance the OSFI assurance over capital, leverage, and liquidity returns for banks and insurers, given the increasing complexity arising from the evolving regulatory reporting framework due to IFRS 17 (Insurance Contracts) standard and Basel III reforms.
ECB published results of the benchmarking analysis of the recovery plan cycle for 2019.