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In response, the European (re)insurance federation, Insurance Europe, has raised concerns over the plans - arguing that the timeline for implementation may be unrealistic, highlighting a lack of political will for the project and calling for local capital adequacy regimes, such as Solvency II, to be recognised as meeting any future global standard.
The IAIS said publication of its ICS consultation document means that a risk-based global insurance capital standard remains on schedule.
The ICS has been divided into two versions. IAIS aims to adopt version 1.0 for confidential reporting in mid-2017 and version 2.0 within ComFrame in 2019. ICS will then be fit for implementation in 2020. Once implemented, the global standards will require insurers to comply with the agreed levels of regulatory capital.
"The release of this 2016 Consultation Document represents a major step towards making a global risk-based, group-wide capital standard a reality," said Victoria Saporta, chair of the IAIS executive committee. "A sound capital and solvency framework for the insurance sector is critical for policyholder protection and will contribute to global financial stability. The ICS is a key part of the equation," she added.
Commenting on the ICS consultation, deputy director general of Insurance Europe, Olav Jones, said the European reinsurance and insurance representative body welcomes the opportunity to provide technical input to the IAIS' work on ICS. He said Insurance Europe supports aims to ensure comparable and high levels of policyholder protection across international jurisdictions.
However, Insurance Europe raised doubts over current ICS proposals and said several issues must be addressed for it to deliver.
One issue is its planned timeframe.
Insurance Europe is also concerned about the lack of strong political support for the ICS, particularly around implementation.
Insurance Europe raised further questions over duplication of effort for companies potentially meeting ICS capital standards along with those required by strong regional regimes, such as Solvency II. It wants the IAIS to clarify how local regimes will be recognised by the ICS.