IAIS published the final application paper on recovery planning, along with the resolution of comments on the draft application paper. The consultation on the paper ran from November 2018 to January 2019. The application paper provides guidance with respect to supervisory material on recovery planning in the Insurance Core Principles (ICPs) and ComFrame. The paper is related to the material in ICP 16.15 and ComFrame 16.15.a and 16.15.b (ICP 16 on enterprise risk management for solvency purposes). The paper is also relevant to supervisory cooperation and coordination arrangements set out in ICP 23 on the group-wide supervisor and in ICP 25 on supervisory cooperation and coordination.
The paper addresses issues that were identified in the development of the material, including feedback received from members and stakeholders during public consultations. The issues involved both the nature of a recovery plan and the roles of the supervisor and insurer with respect to the plan. The paper provides recommendations and guidance to supervisors regarding recovery planning and cooperation and coordination between supervisors. It also provides additional information for insurers with regard to recovery planning, along with the examples illustrating application of principles, standards, and guidance relevant to recovery planning. The key topics covered in the 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 a recovery plan relates to the overall risk management of an insurer
- Key elements of a recovery plan and examples of how these can be addressed in a recovery plan
- The role of the supervisor (or supervisors in a cross-border group) in recovery planning
Keywords: International, Insurance, Recovery Planning, Proportionality, ICP 16, ICP 23, ComFrame, Recovery and Resolution, Governance, IAIS
Previous ArticleAPRA Specifies Capital Treatment of Equity Investments in ABGF
The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA
The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.
The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.
The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.
In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.
The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.
The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).
EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.