IAIS published its newsletter describing the activities and achievements this month. The June issue of the newsletter highlights the rising importance of fintech, discusses activities and progress in the area of ComFrame, and announces that the Eleventh Annual IAIS Global Seminar will be held in Moscow on July 26-27.
The IAIS Secretary General highlighted that the greatest demand coming from IAIS members has been for guidance on proactive supervisory practices that present a robust response to a fast changing environment—in particular, on fintech and cyber security risks. These are issues that impact supervisors from both developed and developing jurisdictions. The demand is less about setting new standards and more about understanding how to apply existing standards through supervisory practices that appropriately help monitor and respond to these new circumstances. IAIS has undertaken some important work on the emerging topics of fintech and cyber risk, but more can and will be done. Supervisory guidance on market conduct and financial inclusion aspects of fintech and supervision of cyber resilience of insurers is forthcoming this year. IAIS is also putting in place a FinTech Forum for the exchange of ideas and lessons among supervisory experts, helping to inform a more agile response.
Other key highlights this month are as follows:
- On 26-27 July, IAIS, along with stakeholders and others, will gather in Moscow, Russia, for the 11th Annual IAIS Global Seminar. Day One will feature panel sessions on ComFrame, including the Insurance Capital Standard (ICS); the IAIS systemic risk framework, including work on an activities-based approach to systemic risk assessment; and insurance in support of inclusive economic development. Day Two will turn to emerging risks by focusing on climate change and cyber risk, while also discussing the use of innovation facilities such as sandboxes as a regulatory tool.
- The Policy Development Committee met on June 13 and discussed the Draft Application Paper on the Composition and the Role of the Board; Draft Application Paper on Supervision of Insurer Cybersecurity; Draft revised ICP 6 (Changes in Control and Portfolio Transfer) and ICP 20 (Public Disclosure); and Key issues for ICS Version 2.0.
- The Capital, Solvency and Field Testing Working Group (CSFWG) met the week of May 22-25 to discuss the ICS Version 2.0 consultation document. The CSFWG also met in Washington DC on June 18-22 to finalize the draft ICS Version 2.0 consultation document. The consultation will be launched this summer for a three-month consultation period.
- The CSFWG continues to work on revisions to ICP 15 (Investment) and ICP 16 (Enterprise Risk Management for Solvency Purposes) and integrated ComFrame as a result of the consultation in November 2017. The revised ComFrame material will be part of the overall ComFrame consultation that will be released this summer.
- At its meeting on June 12-13, the Governance Working Group discussed the ComFrame material related to governance (integrated into ICP 5 (Suitability of Persons), ICP 7 (Corporate Governance), and ICP 8 (Risk Management and Internal Controls), in preparation for the public consultation of the overall ComFrame planned for August.
- At its meeting on June 14-15, the Insurance Groups Working Group discussed the ComFrame material integrated into ICP 9 (Supervisory Review and Reporting), ICP 10 (Preventive and Corrective Measures), ICP 23 (Group-wide Supervision), and ICP 25 (Supervisory Cooperation and Coordination).
Keywords: International, Insurance, Newsletter, ComFrame, ICP, ICS, FinTech, IAIS
Previous ArticleESMA and EFTA SA to Supervise A New CRA Nordic Credit Rating
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.