IAIS published the December 2019-January 2020 issue of its newsletter. This issue of the newsletter highlights that, in 2019, IAIS finalized the review and update of the Insurance Core Principles, adopted the ComFrame, adopted the holistic framework for assessment and mitigation of systemic risk, and reached a package of agreements on the Insurance Capital Standard (ICS). In 2020, IAIS will push ahead with the implementation of its new strategic plan, including the newly adopted post-crisis framework.
The newsletter points out that, in 2019, IAIS made significant strides in a number of important areas including fintech, climate risk, and sustainable finance and that IAIS will build on this work through its the new strategy. The Capital, Solvency and Field Testing Working Group will next meet in Basel on February 4-6 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.
Furthermore, IAIS participated in the fourth conference of the Arab Union of Insurance Regulatory Commissions in December 2019, in which it provided an update on the IAIS developments that are relevant to the MENA region. In January, IAIS provided an overview of the agreements from Abu Dhabi, which included the technical design of ICS Version 2.0 for the monitoring period, operationalization of the monitoring period, and the workplan and timeline for 2020-2024. Additionally, the G-SII Analysts Working Group met in December in Austin (Texas) to finalize the disclosure documents of the 2019 G-SII Data Collection Exercise and to support preparations for the individual insurer monitoring data collection exercise in 2020.
This edition of the newsletter highlights that, with the adoption of the new IAIS holistic framework on systemic risk, the activities that the Macroprudential Policy Committee (MPC) is expected to steer and oversee will evolve. To better align with the expected future activities, the MPC subcommittee structure was changed with effect from January 2020. The three existing MPC subcommittees are being replaced by two new subcommittees: the Macroprudential Supervision Working Group (MSWG) and the Macroprudential Monitoring Working Group (MMWG). The MSWG will address matters on macro-prudential supervision, including development and maintenance of related supervisory and supporting material, and coordinate with other working groups on related matters. The MMWG will be responsible for coordination of the annual global monitoring exercise, including the individual insurer and sector-wide monitoring, along with the macro-prudential assessment of trends, developments, and risks to the financial stability of the global insurance sector.
Keywords: International, Insurance, Newsletter, ComFrame, ICPs, ICS, Fintech, Macro-prudential Policy, ESG, Climate Change Risk, IAIS
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The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.
The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).
The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.
The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.