IAIS is consulting on an application paper that provides guidance on the draft supervisory material related to recovery planning in the Insurance Core Principles (ICPs) and the Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame). Feedback on the draft application paper is invited by January 07, 2019.
The paper addresses the revised material in ICP 16.13 and ComFrame 16.13 (ICP 16 on enterprise risk management for solvency purposes). It is also relevant to the supervisory cooperation and coordination arrangements set out in ICP 23 on the group-wide supervisor and the draft revised ICP 25 on supervisory cooperation and coordination. The application paper should be read in the context of the proportionality principle, which provides supervisors the flexibility to tailor their implementation of supervisory requirements and their application of insurance supervision to achieve the outcomes stipulated in the Principle Statements and Standards, as described in the introduction to ICPs and ComFrame. The key topics covered in the draft paper include the following:
- Objectives and concepts of recovery planning
- Requirements for recovery plans and the application of the proportionality principle to recovery planning
- Governance-related matters in recovery planning, including the development and approval process of a recovery plan and how it relates to the overall risk management of an insurer
- Key elements of a recovery plan, along with examples of how these can be addressed in a recovery plan
- The role of the supervisor (or supervisors in a cross-border group) with regard to recovery planning
Comment Due Date: January 07, 2019
Keywords: International, Insurance, Resolution Planning, Proportionality, ICP 16, ICP 23, ComFrame, IAIS
Previous ArticleBCBS Updates Basel III Monitoring FAQ in May 2018
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting