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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EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.