IAIS is consulting on an application paper that provides guidance on the draft supervisory material related to recovery planning in the Insurance Core Principles (ICPs) and the Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame). Feedback on the draft application paper is invited by January 07, 2019.
The paper addresses the revised material in ICP 16.13 and ComFrame 16.13 (ICP 16 on enterprise risk management for solvency purposes). It is also relevant to the supervisory cooperation and coordination arrangements set out in ICP 23 on the group-wide supervisor and the draft revised ICP 25 on supervisory cooperation and coordination. The application paper should be read in the context of the proportionality principle, which provides supervisors the flexibility to tailor their implementation of supervisory requirements and their application of insurance supervision to achieve the outcomes stipulated in the Principle Statements and Standards, as described in the introduction to ICPs and ComFrame. The key topics covered in the draft paper include the following:
- Objectives and concepts of recovery planning
- Requirements for recovery plans and the application of the proportionality principle to recovery planning
- Governance-related matters in recovery planning, including the development and approval process of a recovery plan and how it relates to the overall risk management of an insurer
- Key elements of a recovery plan, along with examples of how these can be addressed in a recovery plan
- The role of the supervisor (or supervisors in a cross-border group) with regard to recovery planning
Comment Due Date: January 07, 2019
Keywords: International, Insurance, Resolution Planning, Proportionality, ICP 16, ICP 23, ComFrame, IAIS
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