IAIS Adjusts Work Program to Address Impact of COVID-19 on Insurers
Considering the impact of COVID-19 outbreak, IAIS announced initial adjustments to its work program to provide operational relief to its member supervisors, insurers, and other stakeholders. One of these adjustment includes reviewing the 2020 timelines for implementation of the holistic framework for the mitigation of systemic risk in the global insurance sector, in consultation with FSB.
During a meeting, the Executive Committee of IAIS also agreed on the following:
- IAIS will utilize the framework it has developed in recent years for forward-looking risk assessment to undertake a targeted assessment of the impact of COVID-19 on the global insurance sector
- IAIS will review and adjust the timelines for the data collection for the Insurance Capital Standard (ICS) confidential reporting in 2020 as well as the Aggregation Method data collection being supported by IAIS. As a first step, the submission deadline will be extended to October 31, to provide operational relief to participating insurers. In the current circumstances, submissions should be on a best-effort basis. The workplan for development of high-level principles to inform the development of criteria by which to assess whether the Aggregation Method provides comparable outcomes to the ICS will be adjusted to re-schedule the consultation previously planned for July 2020
- IAIS will postpone development of supporting material (Issues Papers and Application Papers providing guidance on supervisory practices), with public consultations generally deferred by at least six months.
A number of IAIS members also adopted measures to support fair treatment of customers, including clear disclosure and efficient claims processing in light of COVID-19 developments. IAIS members are pursuing a range of regulatory and supervisory measures to provide operational relief to insurers in the wake of the COVID-19 outbreak and to provide appropriate flexibility to help insurers maintain their safety and soundness and deliver the essential services they provide to policyholders and the economy. IAIS will continue to assess and address the implications of COVID-19 on the global insurance sector and is actively coordinating with FSB and other standard-setting bodies on cross-cutting financial system issues. Further steps will be taken, as necessary, to coordinate the actions taken by IAIS members to mitigate the impact of COVID-19 on insurers, safeguard policyholders, and contribute to the maintenance of financial stability.
Keywords: International, Insurance, COVID-19, ICS, Aggregation Method, Systemic Risk, Data Collection, Timeline, Operational Risk, Operational Resilience, Fair Treatment, Disclosure, FSB, IAIS
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