IAIS Publishes Newsletter for May 2019
IAIS published the May issue of its newsletter, which highlights that the committee meetings next month in Buenos Aires mark an important point in the IAIS’ journey to a global Insurance Capital Standard (ICS). In June, the focus of committee discussions will shift from design to implementation issues. The final round of field testing is underway, with data due at the end of July. While some ICS design elements remain to be finalized this year, IAIS remains committed to resolving those elements and beginning the monitoring period in 2020, while recognizing that the ICS will continue to evolve during this period.
The IAIS Secretary General highlights that, in June, IAIS will discuss the overall framework for the monitoring period, including confidentiality safeguards around disclosure of the ICS results and modalities for considering unintended consequences. Discussions will cover timelines, process, and governance for developing comparability criteria and completing the comparability assessment of other solvency regimes relative to the ICS. Moving forward towards the adoption of ICS Version 2.0 for the monitoring period, IAIS will continue constructive engagement with stakeholders to ensure greater clarity on the process for finalizing and implementing the ICS. In addition, the newsletter mentions that after more than 17 years with IAIS, Deputy General Secretary Catherine Lezon-Gaertner will be leaving at the end of May 2019.
Other key updates in the newsletter include the following:
- At its meeting on May 09, the Executive Committee discussed the process for developing criteria to assess outcomes comparable to ICS, the issues related to the identification of internationally active insurance groups, and the implementation of ComFrame. At its meeting on May 17, the Executive Committee discussed outstanding issues related to the holistic framework for systemic risk and approved the draft 2020-2024 strategic plan and financial outlook.
- The Accounting and Auditing Working Group met on May 21-22 in Washington, DC and discussed the upcoming consultation of IASB on the IFRS 17 standard on insurance contracts and on the current consultation on Interest Rate Benchmark Reform, in addition to discussing the other relevant projects on the Board agenda. The Working Group also held a dialog with a securities regulator on the Monitoring Group and on audit quality issues. It held a second dialog with representatives of the Global Public Policy Committee’s Insurance Working Group on the potential development of audit papers on the implementation of IFRS 17 and audit quality issues.
- The Policy Development Committee met on April 30 to discuss issues related to the identification of internationally active insurance groups and implementation of ComFrame.
- On May 6-7, the Macro-prudential Policy and Surveillance Working Group met at the Federal Reserve Bank of Chicago. The two main agenda items were the review of Insurance Core Principle (ICP) 24 on macro-prudential surveillance and insurance supervision and the development of a sector-wide monitoring framework, which will be organized around the key insurance risks and trends survey of IAIS and will consist of quantitative and qualitative components.
Keywords: International, Insurance, Newsletter, ComFrame, ICP, ICS, Insurance Contracts, IFRS 17, IAIS
Featured Experts
Gavin Conn
Experienced life actuary; background in economic capital modeling; ALM specialist; IFRS 17 researcher
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Cassandra Hannibal
IFRS 17 subject matter expert; actuary; risk management and capital projection specialist
Previous Article
ESMA Updates Q&A on Securitization RegulationRelated Articles
APRA Updates Validation and Derivation Rules in September 2020
APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
EC Proposes Frameworks for Crypto-Assets and Operational Resilience
EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.
ECB Publishes Opinion on Proposals to Amend Securitization Framework
ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.
FCA Consults on Regulation of International Firms in UK
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS Amends Notice on Capital Adequacy Requirements of Banks
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA to Begin to Move Firms to New Data Collection Platform RegData
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
ISDA Expects IBOR Fallbacks to be Effective by End of January 2021
ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.
APRA Reviews Repayment Deferral Plans, Identifies Best Practices
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs Assess Risks to Financial Sector After COVID-19 Outbreak
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE Confirms Withdrawal of COVID Corporate Financing Facility
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.
