IAIS published the October issue of its newsletter. This issue highlighted that IAIS completed its first assessment under the new Peer Review Process. The first Peer Review Process focused on the mandate for supervisors and supervisory powers, which includes Insurance Core Principles, or ICPs, 1 (Objectives, Powers, and Responsibilities of the Supervisor) and 2 (Supervisor). The Expert Team will present its final report in November and the report will cover a synthesis of useful practices for standards where observance can present challenges.
The IAIS Secretary General highlighted that much of the focus is on finalizing key aspects of post-crisis reforms; however, IAIS will continue to look to the horizon by expanding the efforts to respond proactively to the emerging trends that are fundamentally shifting the landscape of the insurance sector. This was evidenced in a recent collaboration between IAIS and the FSB Financial Innovation Network, at a workshop on "Data and innovation—Opportunities and risks for the insurance sector." The workshop addressed implications of new and big data, artificial intelligence, and machine learning for policyholders and broader society; innovative business models in insurance; third-party outsourcing; and financial stability, regulatory, and supervisory issues. The newsletter also notes that the Fintech Forum met on October 21 to discuss developments in the use of artificial intelligence in the insurance sector and related supervisory issues.
Additional key developments during the month included the following:
- The Executive Committee met on October 10 to agree on feedback to be provided to FSB on certain operational aspects of the holistic framework for systemic risk in the insurance sector. In addition, the Committee met on October 23-24 in London. Agenda items included a discussions on various documents related to the finalization of the holistic framework and on issues related to the development of the Insurance Capital Standard (ICS) Version 2.0 for the monitoring period.
- The Macro-prudential Committee met on October 18 to discuss various documents related to the finalization of the holistic framework for systemic risk in the insurance sector.
- The Policy Development Committee met on October 21 to discuss issues related to development of ICS Version 2.0 for the monitoring period.
- The Accounting and Auditing Working Group (AAWG) met on September 23-24 and finalized a comment letter to IASB on the Exposure Draft on amendments to IFRS 17 on insurance contracts. The AAWG continues to monitor adoption and implementation activities of IFRS 17.
Keywords: International, Insurance, Newsletter, IFRS 17, Systemic Risk, ComFrame, ICS Version 2.0, ICPs, Fintech, Insurance Contracts, FSB, IAIS
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.