IAIS Launches Survey on Treatment of Certain Investments in ICS
As part of its work on the Insurance Capital Standard (ICS) over the 2020-2024 Monitoring Period, IAIS is exploring whether there should be a differentiated capital treatment of certain eligible infrastructure (both equity and debt) as well as strategic equity investments within the ICS. To this end, IAIS launched a stock-take questionnaire (survey) to seek public input regarding quantitative and qualitative material and data sources that could be used to support this work. The survey also provides an opportunity for stakeholders to share with the IAIS their experience with respect to such investments. IAIS is requesting responses by December 07, 2020.
This questionnaire will be complemented by another one, which would be addressed to IAIS members and focused on existing treatment for infrastructure and strategic equity investments under the jurisdictional prudential frameworks. Annex 1 to the questionnaire contains a strawman proposal that provides a temporary reference point in terms of potential relevant definitions and criteria applicable to investments in infrastructure and strategic equity. The inclusion of the strawman proposal is aimed at enabling comparison with the existing frameworks and fostering input by respondents to this questionnaire; this does not imply or determine whether a differentiated treatment should be developed for the ICS. It is largely based on the technical specifications for the supplementary data collection on investment segmentation that was run from 2017 to 2019 in the context of ICS Field Testing and in 2020 in the context of ICS confidential reporting. The view of IAIS on potential relevant definitions and criteria for investments in infrastructure and strategic equity will be formed based on the responses received and further work planned over the next years. Therefore, the current strawman proposal should not be considered as a final view of IAIS regarding definitions and criteria, should a differentiated treatment be developed in the ICS.
Keywords: International, Insurance, ICS, Questionnaire, ICS Version 2, Monitoring Period, Infrastructure Investments, IAIS
Previous Article
SRB Chair Explains Basis for Public Interest Review of Failing BanksNext Article
BoE Provides Reporting Update on Form AS and Form FVRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
