IAIS published its newsletter for March 2020. This edition of the newsletter highlights the steps that IAIS can take to provide operational relief to its member supervisors, insurers, and other stakeholders, while continuing to further a globally coordinated supervisory response in support of the maintenance of financial stability.
The IAIS Executive Committee conference held call on March 26 to discuss the activities of IAIS and the impact of COVID-19 on the global insurance sector. The Executive Committee agreed on the the initial adjustments to the IAIS work program to provide operational relief to its member supervisors, insurers, and other stakeholders. This included utilizing the framework it has developed in recent years for forward-looking risk assessment, reviewing and adjusting the timelines for the data collection for the Insurance Capital Standard (ICS) confidential reporting in 2020 as well as the Aggregation Method data collection, and postponing the development of supporting material (Issues Papers and Application Papers providing guidance on supervisory practices), with public consultations generally deferred by at least six months. The Executive Committee also
- Approved the Level 2 Document-Insurance Capital Standard (ICS) Version 2.0 for the monitoring period, for publication
- Adopted the Issues Paper on the Implementation of the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
- Approved the publication of the 2019 Global Insurance Market Report (GIMAR) and the special topic focus of the 2020 GIMAR
- Discussed measures to encourage progress by group-wide supervisors in the public identification of Internationally Active Insurance Groups (IAIGs)
- Discussed the preliminary findings from the IAIS survey on LIBOR transition in the insurance sector
- Endorsed the recommendations set forth in the report delivered by the Cyber Underwriting Small Group, and approved the Process for the 2021-2022 Roadmap development
Among other notable developments during the month was the February meeting of the Implementation and Assessment Committee. The Committee reviewed and approved the project plan for the SIF/IAIS Application Paper on climate risk in the insurance sector an the project plan for the Application Paper on macro-prudential supervision.
Keywords: International, Insurance, Newsletter, COVID-19, Work Plan 2020, Data Collection, Climate Change Risk, ESG, ICS Version 2, IAIS
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The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.