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
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances
The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.
The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.
The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.
The European Banking Authority (EBA) updated the implementing technical standards that specify the data collection for the 2023 supervisory benchmarking exercise in relation to the internal approaches used in market risk, credit risk, and IFRS 9 accounting.
The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.