Featured Product

    IAIS Statement on Monitoring Period of Insurance Capital Standard

    February 21, 2020

    IAIS published a statement from its Secretary General Jonathan Dixon on the Insurance Capital Standard (ICS) monitoring period. The statement informs about the IAIS expectations regarding participation in the monitoring period, the ultimate goal of a single global capital standard for Internationally Active Insurance Groups (IAIGs), and the refinement process of the ICS during the monitoring period. The draft definition of comparable outcomes and high-level principles will be subject to a public consultation later this year, as will the draft comparability criteria in 2021.

    IAIS is developing the ICS as the global standard to be used as a prescribed capital requirement for Internationally Active Insurance Groups (IAIGs), based on a common set of principles. US members have indicated that their supervisory framework does not support a group-wide consolidated approach to a prescribed capital requirement. Therefore, the US and other interested jurisdictions are developing an Aggregation Method that follows a different approach than the ICS; they aim to use this approach for their implementation of the ICS on an outcome-equivalent basis. The Aggregation Method is not part of the ICS Version 2.0, nor is it being developed by IAIS as an alternate global standard.

    The assessment of whether the Aggregation Method provides comparable outcomes to the ICS will be a technical assessment undertaken by IAIS. As a first step, IAIS has published a draft definition of comparable outcomes and considerations that will guide the development of high-level principles and criteria for the comparability assessment. IAIS has made it clear that this will be a robust and credible technical assessment that does not provide the Aggregation Method a free pass, while providing a viable path for the Aggregation Method to be deemed an outcome equivalent approach. This draft definition of comparable outcomes and high-level principles will be subject to a public consultation later this year, as will the draft comparability criteria in 2021.

    The aim is to monitor the performance of the ICS over a period of time, rather than the capital adequacy of IAIGs. Active participation of IAIGs in the monitoring period is important for providing effective feedback on the ICS. IAIS does not have the legal power to directly mandate IAIGs to report the ICS results during the monitoring period. However, IAIS member supervisors collectively agreed to make participation as large as possible across different jurisdictions and business models, to ensure that the ICS captures risk appropriately. In addition to the feedback from supervisors, the IAIS will consider feedback from stakeholder engagement, a public consultation, and the results of an economic impact assessment, all of which could result in changes to the ICS Version 2.0. In the coming months, IAIS will collectively review the level of IAIG participation and discuss appropriate actions as necessary. 

     

    Keywords: International, Americas, US, Insurance, ICS, ICS Version 2, IAIG, Aggregation Method, Capital Adequacy, IAIS

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News
    News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8596