The International Association of Insurance Supervisors (IAIS) adopted a so called “cornerstones Paper” entitled “Towards a common structure and common standards for the assessment of insurer solvency” outlining key elements for the formulation of regulatory financial requirements for the assessment of insurers’ solvency worldwide.
The paper lays the foundation for the development of a common structure for the assessment of insurer solvency which will enhance transparency and comparability of insurers’ solvency situations and of solvency regimes worldwide. Its main role is to act as conceptual guide rails for the further work to be undertaken by the IAIS on the regulatory financial requirements of insurers, including the valuation of technical provisions and assets, and the regulatory requirements for dealing with the risks of insurers.
The cornerstones paper also sketches the wider contours of a solvency regime based upon a coherent view of the total balance sheet of insurers and flags a number of items that will need to be addressed in the further work including governance, market conduct issues and the role of disclosure.
The IAIS plans to issue a “roadmap” for the completion of the common structure and common standards for solvency assessment, together with a “structure paper” to be developed in 2006.
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© IAIS - International Association of Insurance Supervisors
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