IAIS published the September issue of its newsletter. In this issue, the IAIS Secretary General highlighted the plans under the Strategic Plan for 2020-2024 to strengthen financial inclusion and help supervisors implement the guidance on proportionality in regulation. Additionally, via a partnership with the Sustainable Insurance Forum of the United Nations Environment Program, IAIS will build on its issues paper on climate change risks to the insurance sector by focusing on best practices for implementation of the recommendations of the Task Force on Climate Related Financial Disclosures and on the role of supervisors in supporting the adoption of these practices.
Moreover, IAIS has become an observer of the Network for Greening the Financial System (NGFS) and is collaborating with the Insurance Development Forum on mechanisms to help close the protection gap and improve resilience to natural disasters. On sustainable development, IAIS will be exploring a differentiated capital treatment for qualifying infrastructure investments within the Insurance Capital Standard (ICS). The newsletter also highlights an ongoing IAIS consultation on the draft issues paper on the use of big data analytics in insurance. The consultation ends on October 16 and the draft issues paper focuses on the use of algorithms and advanced data analytics by insurers as well as on the availability of new and alternative data sources.
The additional key developments during the month include the following:
- The Resolution Working Group met on September 10-11 to finalize the application paper on recovery planning, which is expected to be adopted in November 2019. It also held an initial discussion on the next application paper that will provide background to supervisors and resolution authorities on the practical application of the Insurance Core Principle (ICP) 12 (titled "Exit from the Market and Resolution") and ComFrame integrated therein, with a focus on Resolution Powers and Planning.
- The Macro-Prudential Committee recommended a final draft holistic framework for systemic risk in the global insurance sector while the Executive Committee approved a final draft holistic framework for systemic risk in the global insurance sector for submission to FSB.
- The Accounting and Auditing Working Group met on September 23-24 to discuss the IASB agenda, audit quality issues, and jurisdictional implementation activities of IFRS 17 on insurance contracts.
Keywords: International, Insurance, Newsletter, Systemic Risk, IFRS 17, ICS, ComFrame, G-SII, Recovery Planning, IAIS
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