IAIS published its newsletter for March 2020. This edition of the newsletter highlights the steps that IAIS can take to provide operational relief to its member supervisors, insurers, and other stakeholders, while continuing to further a globally coordinated supervisory response in support of the maintenance of financial stability.
The IAIS Executive Committee conference held call on March 26 to discuss the activities of IAIS and the impact of COVID-19 on the global insurance sector. The Executive Committee agreed on the the initial adjustments to the IAIS work program to provide operational relief to its member supervisors, insurers, and other stakeholders. This included utilizing the framework it has developed in recent years for forward-looking risk assessment, reviewing and adjusting the timelines for the data collection for the Insurance Capital Standard (ICS) confidential reporting in 2020 as well as the Aggregation Method data collection, and postponing the development of supporting material (Issues Papers and Application Papers providing guidance on supervisory practices), with public consultations generally deferred by at least six months. The Executive Committee also
- Approved the Level 2 Document-Insurance Capital Standard (ICS) Version 2.0 for the monitoring period, for publication
- Adopted the Issues Paper on the Implementation of the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
- Approved the publication of the 2019 Global Insurance Market Report (GIMAR) and the special topic focus of the 2020 GIMAR
- Discussed measures to encourage progress by group-wide supervisors in the public identification of Internationally Active Insurance Groups (IAIGs)
- Discussed the preliminary findings from the IAIS survey on LIBOR transition in the insurance sector
- Endorsed the recommendations set forth in the report delivered by the Cyber Underwriting Small Group, and approved the Process for the 2021-2022 Roadmap development
Among other notable developments during the month was the February meeting of the Implementation and Assessment Committee. The Committee reviewed and approved the project plan for the SIF/IAIS Application Paper on climate risk in the insurance sector an the project plan for the Application Paper on macro-prudential supervision.
Keywords: International, Insurance, Newsletter, COVID-19, Work Plan 2020, Data Collection, Climate Change Risk, ESG, ICS Version 2, IAIS
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ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED released hypothetical scenarios for a second round of stress tests for banks.
FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020.
FED adopted a proposal to extend for three years, with revision, the information collection under the market risk capital rule (FR 4201; OMB No. 7100-0314).
EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks.