The International Association of Insurance Supervisors (IAIS) has published a consultation paper (which it calls a "concept paper") on its plans for a common framework (ComFrame) for the supervision of internationally active insurance groups (IAIGs).
With ComFrame, the IAIS is aiming to:
- develop methods of operating group-wide supervision of IAIGs in order to make group-wide supervision more effective and more reflective of actual business practices;
- establish a comprehensive framework for supervisors to address group-wide activities and risks and also set grounds for better supervisory co-operation in order to allow for a more integrated and international approach; and
- foster global convergence of regulatory and supervisory measures and approaches.
The consultation paper outlines the evolving thinking and issues which have arisen in the first year of the development of ComFrame. The IAIS says that the draft modules and elements set out in the consultation paper are not yet harmonised in their approach or presentation. The aim of the consultation is to further crystallise the needs and methodologies relating to the supervision of IAIGs.
The IAIS says that the publication of the consultation paper is the first milestone in the three-year development phase of ComFrame which is due to be completed by 1 July 2013.
A related IAIS press release gives further details of the thinking behind ComFrame.