IAIS Publishes Newsletter for October 2019
IAIS published the October issue of its newsletter. This issue highlighted that IAIS completed its first assessment under the new Peer Review Process. The first Peer Review Process focused on the mandate for supervisors and supervisory powers, which includes Insurance Core Principles, or ICPs, 1 (Objectives, Powers, and Responsibilities of the Supervisor) and 2 (Supervisor). The Expert Team will present its final report in November and the report will cover a synthesis of useful practices for standards where observance can present challenges.
The IAIS Secretary General highlighted that much of the focus is on finalizing key aspects of post-crisis reforms; however, IAIS will continue to look to the horizon by expanding the efforts to respond proactively to the emerging trends that are fundamentally shifting the landscape of the insurance sector. This was evidenced in a recent collaboration between IAIS and the FSB Financial Innovation Network, at a workshop on "Data and innovation—Opportunities and risks for the insurance sector." The workshop addressed implications of new and big data, artificial intelligence, and machine learning for policyholders and broader society; innovative business models in insurance; third-party outsourcing; and financial stability, regulatory, and supervisory issues. The newsletter also notes that the Fintech Forum met on October 21 to discuss developments in the use of artificial intelligence in the insurance sector and related supervisory issues.
Additional key developments during the month included the following:
- The Executive Committee met on October 10 to agree on feedback to be provided to FSB on certain operational aspects of the holistic framework for systemic risk in the insurance sector. In addition, the Committee met on October 23-24 in London. Agenda items included a discussions on various documents related to the finalization of the holistic framework and on issues related to the development of the Insurance Capital Standard (ICS) Version 2.0 for the monitoring period.
- The Macro-prudential Committee met on October 18 to discuss various documents related to the finalization of the holistic framework for systemic risk in the insurance sector.
- The Policy Development Committee met on October 21 to discuss issues related to development of ICS Version 2.0 for the monitoring period.
- The Accounting and Auditing Working Group (AAWG) met on September 23-24 and finalized a comment letter to IASB on the Exposure Draft on amendments to IFRS 17 on insurance contracts. The AAWG continues to monitor adoption and implementation activities of IFRS 17.
Keywords: International, Insurance, Newsletter, IFRS 17, Systemic Risk, ComFrame, ICS Version 2.0, ICPs, Fintech, Insurance Contracts, FSB, IAIS
Featured Experts

Gavin Conn
Experienced life actuary; background in economic capital modeling; ALM specialist; IFRS 17 researcher

Blake Coules
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.

David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Related Articles
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
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.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
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.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
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.
CBIRC Revises Measures on Corporate Governance Supervision
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.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
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.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
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.