Following its announcement in February 2009 that it was to focus on the supervision of international insurance groups, and its adoption of a guidance paper setting out key features for effective supervisory colleges in group-wide supervision in October 2009, the IAIS published a press release on 19 January 2010 announcing that it had approved recommendations on the design and workplan regarding a framework to better supervise internationally active insurance groups.
The recommendations were drawn up by a task force chaired by Monica Mächler of the Swiss Financial Market Supervisory Authority and provide for the development of approaches to better monitor group structures, group business mix, and intra-group transactions with a view to identifying risks and establishing safeguards. The framework will set out both quantitative and qualitative requirements, as well as providing a platform for supervisory cooperation and interaction, and facilitating wide implementation. The next steps, which will be coordinated by the Executive Committee, will be the publication of a comprehensive concept paper for consultation in the first half of 2011, and the publication of the full framework, which should happen by 2013. Publication of the full framework will be followed by impact assessments.
Peter Braumüller, Chair of the IAIS Executive Committee, commented that: “We are confident that the framework will become an important contribution to our ongoing wider efforts to promote financial stability”.