The October issue of the IAIS newsletter highlights that IAIS developed supervisory material (that is, standards and guidance) on recovery planning as part of its comprehensive revisions of the Insurance Core Principles (ICPs) and the development of ComFrame. The scope of application of recovery plan requirements is internationally active insurance groups (IAIGs) and, as necessary, other insurers. IAIS is also developing an application paper on recovery planning, a public consultation for which is set to begin in mid-November.
The newsletter mentions that IAIS is planning a public discussion session on November 21 on comments received during the 2018 public consultations on revised ICP 6 (Changes of Control and Portfolio Transfers), ICP 8 (Risk Management and Internal Controls), ICP 15 (Investments), ICP 16 (Enterprise Risk Management for Solvency Purposes), ICP 20 (Public Disclosure), and proposed definitions of enterprise risk management-related terms. The session will also include discussion on comments received during the 2018 public consultations on application paper on the composition and the role of the board, application paper on supervision of insurer cybersecurity, and issues paper on the increasing use of digital technology in insurance and its potential impact on consumer outcomes. The call will also include a public background session on the draft application paper on recovery planning for public consultation. Additional key updates for this month are as follows:
- The Executive Committee met via teleconference on October 12 and approved a report to the FSB Plenary on the IAIS Holistic Framework for Systemic Risk.
- The Capital, Solvency and Field Testing Working Group (CSFWG) met during the week of October 16-19 in Basel to discuss the initial results of 2018 Field Testing, the Aggregation Method additional data collection, and proposed revisions to ICP 15 and ICP 16 as a result of the public consultation in November 2017.
- At its meeting during September 25-27, the Financial Crime Task Force discussed resolution of comments from the public consultation on the application paper on supervision of insurer cybersecurity and workplan for revisions to ICP 22 (Anti-Money Laundering and Combating the Financing of Terrorism), along with the the application paper on combating money laundering and terrorist financing.
- At its meeting on September 11-12, the Governance Working Group discussed the resolution of public consultation comments on the draft application paper on the composition and the role of the board. It also continued work on the revision of ICP 8 (Risk Management and Internal Controls) and the draft application paper on proactive supervision of corporate governance.
Keywords: International, Insurance, Newsletter, ComFrame, ICP, Recovery Planning, Solvency II, IAIS
APRA is consulting on the reporting standard for credit risk management (ARS 220.0).
FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
ISDA launched the IBOR Fallbacks Supplement and the IBOR Fallbacks Protocol, with both becoming effective on January 25, 2021.
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.
FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.
EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.
ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.
Ambassadors of EU member states agreed on the mandate of European Council on the Capital Markets Recovery Package, to support economic recovery from the COVID-19 crisis.