IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections. IAIS also published an Excel document on yield curves for the 2020 ICS data collection. The technical specifications documents include instructions for the data collection of the April 2020 ICS and Aggregation Method exercises of the Monitoring Period Project. The Aggregation Method technical specifications include a table that summarizes the process and timetable to be followed. Deadline for submission of the Aggregation Method data collection template and questionnaire by the group-wide supervisors is October 31, 2020. Analysis by the Analysis Team and discussions of summary results by IAIS are expected to take place from November 2020 to February 2021.
ICS Version 2.0 for the monitoring period consists of three document levels. The Level 1 document for the ICS Version 2.0 for the monitoring period sets out the overarching principles and concepts for the annual confidential reporting of the reference ICS and additional reporting during the five-year monitoring period. The Level 1 document should be read in conjunction with the more detailed specifications contained in the Level 2 document for ICS Version 2.0 for the monitoring period. Levels 1 and 2 together form ICS Version 2.0 for the monitoring period. The Level 1 document was published in November 2019 and the Level 2 document was published in March 2020. The ICS data collection package consists of material provided to Volunteer Groups to complete the annual ICS confidential reporting. The ICS technical specifications document (also referred to as Level 3) includes the Level 1 and Level 2 text and provides additional relevant information, consistent with the agreed Level 1 and 2 documents. The ICS technical specifications must be read in conjunction with the associated data collection template, questionnaire, and yield curve documentation. These documents do not replace or supersede the ICS Level 1 and Level 2 documents.
The Aggregation Method technical specifications must be read in conjunction with the associated data collection template and questionnaire documentation. The Aggregation Method technical specifications, by design, leave several policy questions open. These include, but are not limited to, the choice of scalars, the exact adjustments made, and the treatment of certain capital resources. Although several options for calculating the Aggregation Method have been included, the final method may differ from these options. While care should be taken to enter information for each legal entity correctly, it is of utmost importance that the values are reasonable in total. The terms and balances being requested, when possible, should be in accordance with the local jurisdictional statutory reporting. For entities that do not file statutory reports, local GAAP reporting should be used. The scope of the data collection includes the same entities that would be reported in the GAAP Balance Sheet under the ICS, as defined in the 2020 ICS Data Collection Technical Specifications.
Keywords: International, Insurance, ICS, Data Collection, Aggregation Method, GAAP, ICS Version 2, ComFrame, Monitoring Period Project, IAIS
Previous ArticleFED Updates Form FR 2052a for LCR Reporting by Banks
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).