International Association of Insurance Supervisors
Supervision of control functions and resolution powers and planning - IAIS publishes two new application papers - 23 June 2021
The International Association of Insurance Supervisors (IAIS) has published two new application papers on supervision of control functions and resolution powers and planning.
The former application paper describes practices aimed at helping supervisors address issues related to the supervision of control functions, as described in the Insurance Core Principles (ICPs) and the Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame). In particular, the application paper supports supervisors in achieving the outcomes stipulated in ICP 8 (Risk Management and Control Functions), and is relevant to ICP 5 (Suitability of Persons) and ICP 7 (Corporate Governance).
The latter provides supporting material on supervisory practices relating to resolution. In particular, it provides background for the application of ICP 12 (Exit from the Market and Resolution), including the ComFrame standards and guidance, and is also relevant to ICP 25 (Supervisory Cooperation and Coordination), including the ComFrame standards and guidance (related to crisis management planning).
Application papers are designed to provide additional material related to IAIS supervisory material (ICPs and ComFrame), including examples or case studies.
Application Paper on Resolution Powers and Planning
Application Paper on Supervision of Control Functions
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Application paper on supervisory colleges and issues paper on insurer culture - IAIS launches consultations - 23 June 2021
The International Association of Insurance Supervisors (IAIS) has launched a consultation on a draft revised application paper on supervisory colleges together with a draft issues paper on insurer culture.
The draft paper on supervisory colleges explains the work of the colleges and the way in which insurers might become involved in the supervisory college process. It has been updated to reflect subsequent developments of IAIS supervisory material, including revisions to insurance core principle 3 (information sharing and confidentiality requirements) and 25 (supervisory co-operation and co-ordination), and the adoption of ComFrame, which took place in November 2019. The deadline for comments on the proposals is 24 August 2021.
The second paper explores the concept of “insurer culture” as a point of intersection for prudential and conduct risks and identifies the various insurance core principles that explicitly refer to supervisory expectations regarding insurer culture. The press release notes that: “understanding the various elements that make up insurer culture, which in turn inform certain decisions, behaviours and practices across an insurer’s business, can be critical in helping supervisors identify and address prudential and conduct issues in a more timely and effective manner. This could potentially reduce the occurrence of widespread misconduct and possible financial and consumer harm”. The deadline for comments is 23 August 2021.
The IAIS intends to hold a public session on the two papers via webinar on 30 June 2021.
Press release: IAIS supporting material adopted and released for public consultation
Draft Revised Application Paper on Supervisory Colleges
Questions for Draft Revised Application Paper on Supervisory Colleges
Webpage
Draft Issues Paper on Insurer Culture
Questions for Draft Issues Paper on Insurer Culture
Webpage
Please see the General section for an item on the FCA’s consultation proposing climate-related disclosure requirements for listed companies, asset managers, life insurers and pension providers.
