October 2012 saw the IAIS publish its first ever Global Insurance Market Report. The report’s stated aim was to document the performance of insurers and reinsurers. The report also sought to document key developments in the global insurance market. Having analysed data covering the period 2007- 2011, the report concluded that the industry has been resilient in the face of adverse developments. It is intended that future reports will be released twice yearly from spring 2013.
On 24 September 2012 the IAIS, together with the Basel Committee on Banking Supervision and the International Organization of Securities Commissions, issued its final report on Principles for the Supervision of Financial Conglomerates. The principles are organised into five sections, namely:
- Supervisory powers and authority
- Supervisory responsibility
- Corporate Governance
- Capital adequacy and liquidity
- Risk management
New principles are included concerning liquidity assessment, prudential standards and the structure and responsibilities of the board and senior management of a financial conglomerate.
The IAIS also issued a public consultation on its proposed policy measures for Global Systemically Important Insurers. The proposal consisted primarily of measures surrounding enhanced supervision, effective resolution and higher loss absorption capacity. The public consultation period for the proposed measures has now ended.