Featured Product

    IAIS Publishes Newsletter for February 2020

    February 24, 2020

    IAIS published the newsletter for February 2020. This issue of the newsletter highlights that IAIS is developing the Insurance Capital Standard (ICS) to create a common language for supervisory discussions of group solvency of Internationally Active Insurance Groups to enhance global convergence among group capital standards. At its November meeting in Abu Dhabi, the IAIS Executive Committee agreed on ICS Version 2.0, which is to be used during a five-year monitoring period. The feedback received will be used for further improvement. The issue also highlights that IAIS included cyber risk among the strategic themes of its 2020-2024 strategic plan and financial outlook, particularly under the High Level Goal 1, which aims to assess and respond to issues that present opportunities, challenges, and risks to its mission.

    The newsletter highlights that during the monitoring period, ICS will be used for confidential reporting and discussion among supervisors in supervisory colleges. The expectation regarding participation in the monitoring period is that, at a minimum, the same groups that participated in ICS field testing exercises will participate in confidential reporting, with the number of additional participants increasing over time. In addition to the feedback from supervisors, IAIS will also consider feedback from stakeholder engagement, a public consultation, and the results of an economic impact assessment—all of which could result in changes to ICS Version 2.0. During the monitoring period, IAIS intends to maintain the same level of engagement with stakeholders that it had during field testing.

    The Capital, Solvency and Field Testing Working Group also met in Basel from February 04-06 to discuss the monitoring period and the Level 2 document for ICS Version 2.0 for the monitoring period, based on parent committee decisions in November. An update was provided on the work plan for the aggregation method additional data collection. The group will next meet in Tokyo on March 24-26, 2020 to discuss the confidential reporting package for ICS Version 2.0 for the monitoring period and the 2020 aggregation method additional data collection. Confidential reporting of ICS Version 2.0 for the monitoring period and the aggregation method additional data collection will both be launched in late April 2020, with a launch workshop in Basel on May 19.

    The newsletter highlights that cyber risk underwriting has a huge potential and, therefore, the IAIS Executive Committee has established a small group that is mandated to develop proposals on where IAIS could focus its efforts. This small group will present the findings of its work to the Executive Committee in February 26, including recommendations for a future work plan in this area. Additionally, the Financial Stability Institute cross-sectoral policy implementation meeting on climate risk assessment in the financial sector took place on February 20-21, 2020 in Basel. The meeting consisted of six panel sessions related to climate risk assessment, ranging from more strategic issues such as sequencing of regulatory and supervisory measures to technical discussions such as climate risk modeling. Views were also exchanged on how existing risk management requirements on banks and insurers can be tailored to capture their climate risk exposures. Moreover, the Accounting and Auditing Working Group will meet on February 26-27 in Basel to discuss, among other issues, the proposed amendments of IASB to IFRS 17 and audit quality issues related to the implementation of IFRS 17.

     

    Keywords: International, Insurance, Newsletter, ICS, ICS Version 2, Cyber Risk, IFRS 17, Insurance Contracts, Cyber Underwriting, Climate Change Risk, ESG, IAIS

    Featured Experts
    Related Articles
    News

    EC Delegated Regulation on Specialized Lending Exposures Under CRR

    EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.

    April 14, 2021 WebPage Regulatory News
    News

    OSFI Consults on Minimum Qualifying Rate for Uninsured Mortgages

    OSFI is proposing new minimum qualifying rate for uninsured mortgages under the Guideline B-20.

    April 13, 2021 WebPage Regulatory News
    News

    ECB Updates List of Supervised Entities in EU in April 2021

    ECB updated the list of supervised entities in EU, with the number of significant supervised entities amounting to 115 as of the March 01, 2021 cut-off date.

    April 12, 2021 WebPage Regulatory News
    News

    OSFI Issues Letter on ICAAP Submission and Internal Audit of BCAR

    OSFI issued a letter to confirm that a formal Internal Capital Adequacy Assessment Process (ICAAP) submission is not required in 2021.

    April 12, 2021 WebPage Regulatory News
    News

    EC Agrees to Prolong Scheme to Support NPL Reduction at Greek Banks

    EC has approved the prolongation of an existing Greek scheme aiming to support the reduction of nonperforming loans, or NPLs, of Greek banks on the basis that it remains free of any State aid.

    April 09, 2021 WebPage Regulatory News
    News

    EIOPA Study Examines Internal Model Market and Credit Risks Under SII

    EIOPA published a report presenting the results of its yearly study on the internal modeling of market and credit risks under the Solvency II Directive, also known as SII.

    April 09, 2021 WebPage Regulatory News
    News

    ESMA Issues Notification Templates for STS Synthetic Securitizations

    ESMA published the interim simple, transparent, and standardized (STS) notification templates for synthetic securitizations, post the recent amendments to the Securitization Regulation.

    April 09, 2021 WebPage Regulatory News
    News

    EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    EBA Updates Lists of Entities for Use in Capital Calculations under SA

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    FED Proposes to Automate Bank Stock Adjustment Using Call Report Data

    FED published a proposal to automate non-merger-related adjustments to member banks' subscriptions to Federal Reserve Bank capital stock.

    April 08, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6835