IAIS published a report that presents aggregate assessment results and observations from the peer review process on the topic of corporate and risk governance. The peer review covered the Insurance Core Principles (ICPs) on licensing (ICP 4), suitability of persons (ICP 5), corporate governance (ICP 7), and risk management and internal controls (ICP 8). The report includes a synthesis of useful practices for standards where observance can present challenges. The Annexes to the report include a description of the peer review process, a list of the participating IAIS members by category, and a list of aggregated results of observance level by region.
Overall, the observance rate per ICP has increased since the last assessment in 2014.
- For all members, ICP 4 was assessed as either Observed (29 members) or Largely Observed (41 members). FSB jurisdictions and other OECD jurisdictions had the highest level of observance.
- For a large majority of members, ICP 5 was assessed as Largely Observed (51 members) and Observed (17 members); it was Partly Observed for only two members. The observance of ICP 5 was high among participating authorities and has increased compared with the results of the assessment in 2014, when ICP 5 was assessed as Observed for only 10 from 69 jurisdictions.
- For all participating authorities, ICP 7 has been assessed as Observed (11 authorities), Largely Observed (54 authorities), or Partly Observed (5 authorities). The overall conclusion is that observance of this core principle is high.
- For most members, ICP 8 was assessed as either Observed (29 members) or Largely Observed (35 Members); it was Partly Observed for only a small minority of members (5 members).
The assessment questionnaire, which was developed by IAIS Expert Team, consisted of 117 questions covering the 9 standards of ICP 4, 6 standards of ICP 5, 11 standards of ICP 7, and 8 standards of ICP 8. Out of the 70 authorities that participated in the peer review process, 20 responses came from IAIS members in FSB jurisdictions and 30 responses came from IAIS members in the Organization for Economic Co-operation and Development (OECD) jurisdictions. The participants in the peer review process were asked to respond to open questions and to share their supervisory practices. Based on the answers received, the Expert Team has drawn on useful practices as guidance for other jurisdictions. As part of the report, the aggregated results by standard and jurisdiction is also available; however, this information is not publicly available, is confidential, and is disclosed to IAIS members only.
Keywords: International, Insurance, ICP 4, ICP 5, ICP 7, ICP 8, Governance, Observance of ICP, Peer Review, Internal Controls, ICPs, IAIS
Previous ArticleFED Updates Form and Instructions for FR Y-14Q Data Collection
ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED released hypothetical scenarios for a second round of stress tests for banks.
FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020.
FED adopted a proposal to extend for three years, with revision, the information collection under the market risk capital rule (FR 4201; OMB No. 7100-0314).
EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks.