IAIS releases updated G-SII assessment methodology
The International Association of Insurance Supervisors (IAIS) has released an updated assessment methodology for global systematically important insurers (G-SIIs).
Revisions to the initial assessment methodology, which was first published in 2013, were informed by three previous designation exercises and public comments received on two consultation papers issued in November 2015.
The methodology outlines a five-phase approach to the process that includes fact-based qualitative and quantitative elements.
Certain indicators used in the initial assessment methodology have been amended to address issues related to indicator responsiveness, connection with systemic risk and data quality, including reliability (across both insurers and jurisdictions).
Phases one and two involve the quantitative components while phase three complements the first two phases through the collection and analysis of additional quantitative or qualitative information that is not captured.
The fourth phase enables prospective G-SIIs to receive information regarding that insurer’s status through the first three phases and present additional information relating to any aspect of the methodology.
The final phase combines phases one through to four to produce an overall assessment that concludes with the IAIS’ recommendation to the Financial Stability Board.
