IAIS published the September issue of its newsletter. In this issue, the IAIS Secretary General highlighted the plans under the Strategic Plan for 2020-2024 to strengthen financial inclusion and help supervisors implement the guidance on proportionality in regulation. Additionally, via a partnership with the Sustainable Insurance Forum of the United Nations Environment Program, IAIS will build on its issues paper on climate change risks to the insurance sector by focusing on best practices for implementation of the recommendations of the Task Force on Climate Related Financial Disclosures and on the role of supervisors in supporting the adoption of these practices.
Moreover, IAIS has become an observer of the Network for Greening the Financial System (NGFS) and is collaborating with the Insurance Development Forum on mechanisms to help close the protection gap and improve resilience to natural disasters. On sustainable development, IAIS will be exploring a differentiated capital treatment for qualifying infrastructure investments within the Insurance Capital Standard (ICS). The newsletter also highlights an ongoing IAIS consultation on the draft issues paper on the use of big data analytics in insurance. The consultation ends on October 16 and the draft issues paper focuses on the use of algorithms and advanced data analytics by insurers as well as on the availability of new and alternative data sources.
The additional key developments during the month include the following:
- The Resolution Working Group met on September 10-11 to finalize the application paper on recovery planning, which is expected to be adopted in November 2019. It also held an initial discussion on the next application paper that will provide background to supervisors and resolution authorities on the practical application of the Insurance Core Principle (ICP) 12 (titled "Exit from the Market and Resolution") and ComFrame integrated therein, with a focus on Resolution Powers and Planning.
- The Macro-Prudential Committee recommended a final draft holistic framework for systemic risk in the global insurance sector while the Executive Committee approved a final draft holistic framework for systemic risk in the global insurance sector for submission to FSB.
- The Accounting and Auditing Working Group met on September 23-24 to discuss the IASB agenda, audit quality issues, and jurisdictional implementation activities of IFRS 17 on insurance contracts.
Keywords: International, Insurance, Newsletter, Systemic Risk, IFRS 17, ICS, ComFrame, G-SII, Recovery Planning, IAIS
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.
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The UK authorities have published consultations with respect to the Basel requirements for banks. The Prudential Regulation Authority (PRA) published the consultation paper CP16/22 on rules for the implementation of Basel 3.1 standards.
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.
The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.