IAIS has published its higher loss absorbency (HLA) requirement for global systemically important insurers (G-SIIs) which has been endorsed by the FSB. Together with the basic capital requirements (BCR) this measure aims to reduce the probability and impact on the financial system resulting from the distress or failure of a G-SII. The HLA will apply to all G-SII group activities, including non-insurance subsidiaries, from January 2019. Following implementation all G-SIIs will be expected to hold regulatory capital that is not less than the sum of the required capital amounts from the BCR and the HLA. (Source: IAIS Develops HLA Requirement for G-SIIs)