|
|
Basel, Switzerland – The International Association of Insurance Supervisors (IAIS) launched today the fourth and final public consultation on the Insurance Capital Standard (ICS) before its planned adoption in December 2024.
“After ten years of development, three consultations, six field-testing exercises and three years of confidential reporting, I am pleased that the Executive Committee of the IAIS has agreed on the candidate ICS as a prescribed capital requirement (PCR) for a final public consultation,” remarked Vicky Saporta, Executive Committee Chair. “Once adopted at the IAIS Annual General Meeting at the end of 2024, the ICS will provide a common language for cross-border supervisory discussions on insurance group solvency in a world where we face many common and interconnected global risks.”
The ICS as a PCR will provide a consolidated, risk-based measure of capital adequacy for Internationally Active Insurance Groups (IAIGs). Group-wide supervisors (GWSs) will use the ICS as a binding requirement, at the group level, for IAIGs headquartered in their jurisdictions. IAIS members are committed to the implementation of IAIS standards, and some members are already taking steps to embed the ICS in their regulatory regimes. In parallel, the United States is developing an Aggregation Method (AM) to a group capital calculation, which, if deemed comparable, will be considered an outcome-equivalent approach for implementation of the ICS as a PCR.
The candidate ICS as a PCR incorporates policy changes made to ICS version 2.0, based on data and feedback collected during the monitoring period. These include changes to its three components (valuation, capital requirements and capital resources), which were informed by inputs from volunteer groups, colleges of supervisors and other stakeholder engagement efforts.
In addition to feedback on the standard itself, the IAIS is collecting input on the foreseeable economic impact of ICS implementation. That input will inform the ICS Economic Impact Assessment, which will evaluate the effects that the implementation of the ICS may have on product availability, insurers’ business models and financial markets.
“Taken together, the ICS as a PCR public consultation, the economic impact assessment and the additional data gathered during the ICS monitoring period will provide a significant body of evidence to inform the IAIS’ decision on the adoption of the ICS at the end of 2024,” said Jonathan Dixon, IAIS Secretary General...
more at IAIS