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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FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.
FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.
EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.
ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.
PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).
US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).
US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.