The September issue of the IAIS newsletter features an article on the new five-year strategic plan of IAIS, which will include a statement of priorities for 2020-2024. The focus is expected to shift from finalizing the current commitments to the post-financial crisis reform agenda, which covers ComFrame, including Insurance Capital Standard (ICS) Version 2.0 for confidential reporting, and a holistic framework for the mitigation of systemic risk.
In the new strategic plan, more focus will be on good supervisory practices to facilitate application of the comprehensive set of standards, rather than setting new rules. A more robust assessment of the implementation of the agreed standards that have been developed is also on the agenda. Additionally, the coming period will likely see a more integrated approach to prudential and market conduct work streams, reflecting that many of the risks to policyholder protection emerging from the trends and developments such as digital innovation relate to the fair treatment of customers. Digital innovation, cyber risk, climate change, and the protection gap are all fundamental market developments and challenges requiring the attention of insurance supervisors.
The September newsletter highlights that, in addition to the September 11 meeting of the Resolution Working Group, IAIS held a stakeholder event on recovery planning and resolution on September 12, 2018. IAIS published a presentation document that covers key issues discussed during the event, which provided members and stakeholders with the opportunity to discuss revisions to supervisory material on recovery planning in ICP 16 and the ComFrame material integrated therein, along with the ComFrame material integrated into ICP 12 (on Exit from the Market and Resolution). Stakeholders could also provide inputs for the development of an Application Paper on Recovery Planning, for which a public consultation document is scheduled to be released in November 2018.
This issue of the newsletter also announces that the 14th Consultative Forum on InsurTech will be held on October 24, 2018 in Argentina. The Forum offers a platform for dialog between regulators, the industry, and other stakeholders, in addition to the opportunity to meet with and learn from colleagues and experts involved in InsurTech innovation from Latin America and other regions. Also on the agenda are discussions on new regulatory considerations and on how policymakers and supervisors can create environments that enable and encourage innovation. The focus will also be on the approaches that regulators worldwide are adopting, to facilitate digital innovation in their respective markets and the lessons that can be learned from these.
Keywords: International, Insurance, Newsletter, ComFrame, ICP, InsurTech, Strategic Plan, Recovery and Resolution, IAIS
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CBUAE has issued a regulation that introduces the licensing and supervision framework for low-risk, specialized banks.
APRA is consulting on CPG 511—the draft Prudential Practice Guide on remuneration for banks, insurers, and superannuation licensees—with the comment period ending on July 23, 2021.
MAS announced a new RegTech grant scheme and an enhancement of the Digital Acceleration Grant (DAG) scheme to accelerate technology adoption in the financial sector.
PRA published a letter that sets out findings from the 2020 Internal Audit Review of the Collections function of a sample of non-systemic banks and building societies.
EIOPA launched a consultation on the Interbank Offered Rate (IBOR) transitions, in context of the EU Benchmarks Regulation.
EIOPA published a discussion paper on uses cases of, and the European approach to, blockchain and smart contracts in the insurance sector.
HKMA granted a banking license to NongHyup Bank (also NH Bank), which is incorporated in the Republic of Korea.
PRA published a discussion paper that explores options for developing a simpler but resilient prudential framework for banks and building societies that are neither systemically important nor internationally active.
ECB published an opinion on the proposal for a regulation on the pilot regime for market infrastructures based on distributed ledger technology.
EBA proposed regulatory technical standards that specify how to identify the appropriate risk-weights and conditions when assessing minimum loss given default (LGD) values for exposures secured by immovable property.