The May issue of the IAIS newsletter highlights that IAIS will increasingly pivot to a greater emphasis on enhancing supervisory practices. Additionally, during its meeting, the Resolution Working Group (RWG) discussed several final revisions to supervisory material on recovery planning and to the ComFrame material integrated into ICP 12 on Exit from the Market and Resolution, before the consultation on ComFrame in its entirety begins in August. The RWG also discussed the first draft of the application paper on recovery planning, for which a public consultation is expected later this year.
At the meeting of the Accounting and Auditing Working Group, the stakeholders received an update on the status of the activities and near-term plans of the Working Group, including the draft revisions to Insurance Core Principle (ICP) 20 (Public Disclosure), which is expected to be issued for public consultation by July. The Working Group also had constructive discussions with representatives of the International Actuarial Association on the work related on IFRS 17, with IASB on its IFRS 17 implementation support activities, with FSI on planned IFRS 17 initiatives, and with interested stakeholders on near-term work and considerations for 2019-20 work plans. Other updates are as follows:
- Discussions, at the April meeting of the Supervisory Forum, covered supervisory approaches to stress testing, Own Risk and Solvency Assessment (ORSA) supervision, risk-based prioritization, off-site monitoring, and challenges for life insurers in a low interest rate environment.
- IAIS released an annual key insurance risks and trends (KIRT) survey, to provide a better understanding of the key insurance risks and trends in different jurisdictions, based on 22 broad risk indicators.
- The Systemic Risk Assessment Drafting Group made considerable progress on the development of a holistic framework for the mitigation of systemic risk, which will be the subject of a public consultation in late 2018.
Keywords: International, Insurance, ICP, Newsletter, ComFrame, Supervisory Forum, ORSA, Systemic Risk, IFRS 17, 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.