Fitch sees barriers to international insurance regulation
The International Association of Insurance Supervisors (IAIS) is creating a risk-based, single, global Insurance Capital Standard (ICS) for Global Systemically Important Insurers (G-SIIs), but Fitch questions if the goal is achievable.
The IAIS's ultimate goal is a single ICS with a common methodology to achieve comparable outcomes across jurisdictions, although in the immediate term two valuation approaches are likely to be allowed.
No date has been set for the adoption of an ICS based on a single calculation methodology. Fitch believes it will be particularly difficult to implement because of potential uncertainty on cross-border regulation where various competing regulatory bodies could have conflicting or overlapping mandates.
The IAIS has several significant consultations in progress covering revisions to a number of the Insurance Core Principles (ICPs) and to the Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame).
The IAIS has further developed its methodology on the designation criteria for G-SIIs. The development is intended to increase transparency over the criteria for insurers' inclusion on the list. Existing and prospective G-SIIs will be able to request their scores from the initial assessment stage of the designation process, which could help them modify their strategy in view of the potential implications of G-SII designation.
Today’s top stories
Aon Benfield’s APAC head retires, no replacement planned
Travelers to offer pre-breach cybersecurity to policyholders
European insurance M&A activity slows in 2016
Ascent hires claims director from Tokio Marine Kiln
AXIS Insurance launches new cover for private companies
Did you enjoy reading this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
