Consultation on global systemically important insurers

The International Association of Insurance Supervisors (“IAIS”) has published a compilation of the responses it has received to its May 2012 consultation on a proposed methodology for identifying global systemically important insurers (“G-SIIs”). Responses were received from a range of insurers and institutions from across the globe, including the American Insurance Association, the Association of British Insurers, the Institute of International Finance, Insurance Europe and the International Actuarial Association.

The IAIS has also published its proposed resolution, setting out its comments on the 49 main issues that were apparent from the responses received and its proposals to resolve these issues. Some of the key points made by the IAIS are as follows:

  • the G-SIIs process will have three stages of data collection: (i) public data used to select participating insurers, (ii) data call from all participating insurers, and (iii) additional data from G-SII candidates;
  • the designation of G-SIIs will be done by the Financial Stability Board and national authorities, in consultation with the IAIS;
  • there is no intention to designate a fixed number of insurers as G-SIIs and it is possible that no G-SIIs will be identified by the process;
  • the assessment methodology will involve the use of both qualitative and quantitative indicators to assess whether any insurers should be considered to be systemically important at a global level;
  • national authorities will be relied upon to implement agreed measures for G-SIIs; and
  • the IAIS will finalise the weightings given to certain criteria after reviewing the results from the 2011 data call, after which a list of G-SII candidates will be determined for the supervisory judgment process.

The IAIS also noted that it intends to publish a list of G-SIIs along with its final policy measures in April 2013.

Consultation on a common framework for the supervision of internationally active insurance groups

The IAIS has also published a compilation of the responses it has received to its July 2012 consultation on a common framework (known as “ComFrame”) for the supervision of internationally active insurance groups. Responses were received from a broad range of insurers and institutions from across the globe, including the FSA, Lloyd’s, the Association of British Insurers, the European Commission, EIOPA, Insurance Europe, the American Insurance Association, NAIC, the Institute of International Finance, the International Actuarial Association and the International Network of Insurance Associations.