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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ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED released hypothetical scenarios for a second round of stress tests for banks.
FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020.
FED adopted a proposal to extend for three years, with revision, the information collection under the market risk capital rule (FR 4201; OMB No. 7100-0314).
EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks.