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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EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.