The IAIS has completed the first year of monitoring for the Insurance Capital Standard (ICS), despite the operational challenges of 2020. First ICS discussions amongst group-wide supervisors with other involved supervisors provided valuable input and feedback to enhance the ICS further.
The first year of ICS monitoring saw strong participation and engagement from insurance groups with participation growing further in 2021.
Despite the operational challenges of 2020, the first year of ICS monitoring saw strong participation and engagement from insurance groups
• Participation in the ICS monitoring period will grow in 2021, with additional insurance groups participating
• First ICS discussions amongst group-wide supervisors (GWS) with other involved supervisors provided valuable input and feedback to enhance the ICS further
• The ICS aims to create a common language for supervisory discussions of group solvency of Internationally Active Insurance Groups (IAIGs) to enhance global convergence among group capital standards
The International Association of Insurance Supervisors (IAIS) has completed the first year of monitoring for the Insurance Capital Standard (ICS). The ICS aims to provide a globally comparable risk-based measure of capital adequacy of International Active Insurance Groups (IAIGs) and a common language to facilitate effective supervisory discussions of group solvency. The ultimate goal is a single ICS that includes a common methodology by which one ICS achieves comparable, ie substantially the same, outcomes across jurisdictions.
The IAIS Executive Committee (ExCo) last week reviewed results from the 2020 ICS data collection and agreed to progress the 2021 ICS data collection with a small number of revisions to address issues that were identified through the data analysis and from the feedback received in the first year of the monitoring period. In June, the IAIS will publish the updated ICS specifications for the second year of the monitoring period.
“We are pleased that despite the operational challenges of 2020, the first year of the ICS monitoring period has been effective and has allowed for meaningful feedback and analyses to support IAIS discussions on ICS performance,” said Vicky Saporta, IAIS ExCo Chair. “With the completion of the first year of monitoring, we have taken another step towards our ultimate goal of a single ICS.”
During this initial year of monitoring, the IAIS has for the first time received feedback resulting from discussions amongst group-wide supervisors (GWS) and supervisory colleges about ICS performance. This substantial and helpful feedback will contribute to further improvements and planning for the second year of the monitoring period....
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