FSB identifies an initial list of G-SIIs

18 July 2013

The FSB has endorsed the assessment methodology and policy measures published by the IAIS, and has named the first nine globally systemically important insurers (G-SIIs).

At the November 2011 Cannes Summit, the G20 Leaders endorsed the implementation of an integrated set of policy measures to address the risks to the global financial system from systemically important financial institutions (G-SIFIs). These policy measures are to apply to G-SIFIs identified by the Financial Stability Board (FSB) in collaboration with the standard-setters and national authorities.

The International Association of Insurance Supervisors (IAIS) published today a set of policy measures [see pdf-link below] that are consistent with the FSB policy framework endorsed by G20 Leaders and comprise:

• recovery and resolution planning requirements;
• enhanced group-wide supervision; and
• higher loss absorbency requirements.

The FSB, in consultation with the IAIS and national authorities, today identifies an initial list of G-SIIs to which the IAIS policy measures will apply. These G-SIIs have been identified using the IAIS assessment methodology. Going forward, the list of G-SIIs will be updated each year in November, starting from next year. 

The list initially comprises:

• Allianz SE;
• American International Group, Inc.;
• Assicurazioni Generali SpA;
• Aviva plc;
• Axa SA;
• MetLife, Inc;
• Ping An Insurance (Group) Company of China, Ltd;
• Prudential Financial, Inc; and
• Prudential plc.

For the institutions identified today, implementation of enhanced group-wide supervision commences immediately, crisis management groups should be established by July 2014, and the recovery and resolution planning requirements under the FSB-Key Attributes for Effective Resolution Regimes should be met by end-2014. As a foundation for higher loss absorbency requirements for G-SIIs, the IAIS will as a first step develop straightforward, backstop capital requirements to apply to all group activities, including non-insurance subsidiaries, to be finalised by the time of G20 Summit in 2014.

Implementation details for higher loss absorbency requirements will be developed by end-2015 and will apply starting from January 2019 to those G-SIIs identified in November 2017.

Mark Carney, Chairman of the FSB said “Today marks an important step toward more broadly addressing the risks associated with systemically important financial institutions. These policy measures will be followed over time by a substantially strengthened comprehensive regulatory and supervisory framework for all internationally active insurers. A sound capital and supervisory framework for the insurance sector is essential for supporting financial stability.”

Press release

See also Global systemically important insurers (G-SIIs) and the policy measures that will apply to them

IAIS-press release

IAIS-webpage

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