IAIS published the June issue of its newsletter, which focuses on the successful completion of the Global Seminar held in Buenos Aires. The key highlights of the Seminar included agreement on a clear way forward for the Insurance Capital Standard (ICS) monitoring period, launch of consultation on specific drafting in the Insurance Core Principles (ICPs) and ComFrame that cover the proposed supervisory policy measures in the holistic framework for mitigating systemic risk, and publication for information of the close to final version of ComFrame. Additionally, IAIS’ Extraordinary General Meeting approved the new Strategic Plan and Financial Outlook for the next five years: 2020 to 2024.
The IAIS Secretary General highlights that, in the period ahead, finalization and implementation of post-crisis reforms—ComFrame, including the ICS. and the holistic framework—will remain critical. Focus will pivot to the next horizon. Trends and developments such as fintech, cyber risk, climate risk, and the challenge of sustainable development will reshape the insurance business in the coming years. As the global community of insurance supervisors, IAIS will support members in proactively responding to these challenges and opportunities. The Strategic Plan maintains the IAIS’ core functions of developing supervisory material, supporting implementation of agreed standards and contributing to financial stability.
Other key updates in the newsletter include the following:
- At its meeting on June 12, the Executive Committee approved to publish, for information, the outcome of the 2018 public consultation on overall ComFrame; public consultation IAIS supervisory material; and certain proposals with respect to monitoring the identification of internationally active insurance groups (IAIGs) and supporting implementation of ComFrame. The Committee also approved to release for public consultation, the draft supervisory material related to the holistic framework for systemic risk; and endorsed the final report on member assessment on Guernsey.
- The Implementation and Assessment Committee met on June 11 and approved the supporting material drafting guide and discussed the implementation assessment of ComFrame and the holistic framework.
- At its meeting on June 11, the Macro-Prudential Committee recommended for Executive Committee approval the release for public consultation the revised draft ICP and ComFrame material related to the holistic framework.
- The Policy Development Committee met on June 10 to recommend revisions to draft ComFrame material based on 2018 public consultation comments and the summary of the main 2018 public consultation comments. The Committee also discussed issues related to implementation of ComFrame, 2019 Field Testing of ICS Version 2.0 and preparation for the ICS Version 2.0 monitoring period.
- The Accounting and Auditing Working Group plans to meet on September 23-24 to discuss IASB exposure draft on the amendments to, and potential delay of, IFRS 17 on insurance contracts. The Working Group also expects to discuss the IASB agenda, audit quality issues, and jurisdictional implementation activities of IFRS 17, along with Monitoring Group developments, and hold a Stakeholder call-in session.
- At its meeting on May 21-22, the Insurance Groups Working Group finalized resolution of the 2018 public consultation comments on ComFrame material in ICPs on supervisory review and reporting (ICP 9), preventive measures, corrective measures, and sanctions (ICP 10), group-wide supervision (ICP 23), and supervisory cooperation and coordination (ICP 25). The Working Groups also discussed issues related to identification of IAIGs and supervisory cooperation and coordination in supervision of IAIGs, in the context of preparation for implementation of ComFrame.
Keywords: International, Insurance, Newsletter, ComFrame, ICP, ICS, Insurance Contracts, IFRS 17, Systemic Risk, Fintech, IAIS
Previous ArticleBank of Finland Updates Requirements and Description under AnaCredit
Next ArticleIAIS Publishes Roadmap for 2019
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.