Featured Product

    IAIS Consults on Guidance on Liquidity Risk Management for Insurers

    November 19, 2019

    IAIS is seeking feedback on the draft application paper on liquidity risk management for insurers. As part of the holistic framework for systemic risk in the insurance sector, IAIS enhanced the enterprise risk management requirements in ICP 16 to more explicitly address liquidity risk. The paper provides guidance on supervisory material related to liquidity risk management in the Insurance Core Principles (ICPs) and ComFrame. The guidance relates to the material in ICP standards 16.8 and 16.9 (ICP 16 on enterprise risk management, for solvency purposes) and ComFrame 16.9.a–16.9.d. The comment period for the application paper on liquidity risk management ends on January 20, 2020.

    The key topics covered in the paper include governance, liquidity stress testing, liquidity portfolio, contingency funding plan, and liquidity risk management report. The paper includes guidance and examples on the following:

    • Considerations on the proportional application of liquidity risk management measures and the ways that supervisors may tailor requirements.
    • Detailed components of the four elements for “more detailed risk management processes” in ICP standard 16.9:  liquidity stress testing, maintenance of a portfolio of unencumbered highly liquid assets, a contingency funding plan, and the submission of a liquidity risk management report to the supervisor.
    • Integration of liquidity risk into the enterprise risk management framework for insurers, as described in ICP Standard 16.8, including recommendations for governance.

    The application paper should be read in the context of the proportionality principle, which acknowledges the flexibility among supervisors to tailor the application of supervisory requirements and supervision to achieve the outcomes stipulated in the principle statements and standards. Application papers provide additional material related to one or more ICPs, ComFrame, or global systemically important insurer policy measures, including examples or case studies that help in the practical application of supervisory material.

     

    Comment Due Date: January 20, 2020

    Keywords: International, Insurance, ICP 16, ComFrame, Proportionality, Stress Testing, Governance, Liquidity Risk, Enterprise Risk Management, IAIS

    Featured Experts
    Related Articles
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7571