IAIS published the strategic plan for 2020–2024, which sets out the high-level goals and strategies to guide it in its work for the next five-year period, beginning January 01, 2020. In its strategic plan, IAIS has identified high-level goals that involve standard-setting, responding to emerging policy issues, supporting supervisory practices and observance of standards, and strengthening governance. IAIS plans to implement the process for the confidential reporting of Insurance Capital Standard (ICS) Version 2.0 to supervisory colleges from 2020 to 2024, to effectively inform the finalization of its design as a Prescribed Capital Requirement for implementation by members from 2025 onward.
In developing the strategic plan, IAIS has identified a number of trends and developments in insurance markets and insurance supervision that are likely to impact the IAIS mission. These include a host of emerging policy issues such as fintech, cyber risk, climate risk, and the challenges related to sustainable development, each with the potential to reshape the insurance business in the coming years. IAIS must continue to evolve with these changes. To this end, the following five high-level goals, along with the associated strategies for the 2020–2024 period, reflect the core functions of developing supervisory material, supporting implementation, and contributing to financial stability:
- Assessing and responding to market developments. IAIS anticipates shifting toward increased monitoring of new vulnerabilities and trends that are either emerging or accelerating and that could pose a threat to, or opportunity for, policyholder protection and financial stability.
- Standard-setting. Following a long period of extensive supervisory development work, IAIS anticipates a period of greater stability for its supervisory material, while noting that the finalizing the delivery of an ICS through the monitoring phase remains a priority during 2020–2024. Greater stability for IAIS standards does not mean that its core function as a standard-setter will end. Rather, further changes to the IAIS’ supervisory material must be guided by monitoring and assessing implementation and by an orientation toward emerging and accelerating risks.
- Supporting supervisory practices. IAIS anticipates an increasing role in supporting supervisors to put the supervisory material into practice. Activities in this area will be informed by the the monitoring of market developments, emerging or accelerating risks, and assessment of implementation gaps.
- Supporting observance of standards. With greater stability in the IAIS’ supervisory material, the focus will shift to a greater emphasis on assessing implementation and facilitating supervisory capacity building.
- Effective operations and transparency. The demands of responding to rapidly changing trends and developments will require careful stewardship of resources. IAIS will continue its commitment to strengthening its governance, processes, and controls to ensure effective and efficient delivery on its priorities.
Keywords: International, Insurance, Strategic Plan, High-Level Goals, ComFrame, ICS, IAIS
Previous ArticleIASB Publishes Work Plan and Meeting Updates for July 2019
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances
The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.
The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.
The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.
The European Banking Authority (EBA) updated the implementing technical standards that specify the data collection for the 2023 supervisory benchmarking exercise in relation to the internal approaches used in market risk, credit risk, and IFRS 9 accounting.
The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.