trending Market Intelligence /marketintelligence/en/news-insights/trending/7Dc-kF0rWdHnpGhsjc0Brg2 content esgSubNav
In This List

IAIS posts revised global insurance capital standard proposal

Case Study

A Prestigious Global Business School Gains a Competitive Edge

Video

S&P Capital IQ Pro | Unrivaled Sector Coverage

Video

S&P Capital IQ Pro | Powering Your Edge

Blog

Beyond ESG with Climate Stress Testing: Getting Practical at Banks & Insurers


IAIS posts revised global insurance capital standard proposal

The InternationalAssociation of Insurance Supervisors is seeking a second round of feedback on itsdevelopment of global capital standards for insurers, after it posted an updatedversion of the organization's progress toward establishing uniform regulations.

The 175-pagepublic consultation document largely retains the regulatory framework that the IAISproposed in late 2014,tweaking various parts of its methodology in response to field testing conductedover the past couple of years. The paper also poses more than 200 questions forcompanies and other stakeholders to answer, as the IAIS refines its methodologyfor evaluating the stability of insurers across the world.

"Therelease of this 2016 Consultation Document represents a major step towards makinga global risk-based, group-wide capital standard a reality," IAIS ExecutiveCommittee Chair Victoria Saporta said in a news release. "A sound capital andsolvency framework for the insurance sector is critical for policyholder protectionand will contribute to global financial stability."

The documentfocuses on the specifics of so-called Version 1.0 capital standard components suchas valuing companies' assets and liabilities, qualifying capital resources and creatinga standard method for setting capital requirements. The IAIS will collect commentson its proposals through Oct. 19, with the goal of finalizing its Version 1.0 regulationsby mid-2017.

The IAIShas worked over the past several years toward developing cross-border standardsfor monitoring insurance companies, despite heavy criticism from both the insurance industry and regulatorsand lawmakers in the U.S.

FederalReserve Governor Daniel Tarullo in a May speech called the IAIS' standards "insufficientlydeveloped" and warned that they would clash with U.S. regulatory requirements.The Fed in June unveiledits own proposed capital standards for insurers that it deems systemically important.