IAIS begins AM comparability assessment

Written by Adam Cadle

18/10/2023

The International Association of Insurance Supervisors (IAIS) has begun its assessment of whether the Aggregation Method (AM) being developed by the US provides comparable outcomes to the global Insurance Capital Standard (ICS), and if so, will be considered an outcome-equivalent approach for implementation of the ICS as a prescribed capital requirement (PCR).

This follows the finalisation of the comparability criteria in March 2023 and the submission of data by participating insurance groups at the end of August in response to the 2023 ICS and AM data collection packages. The data collection packages include detailed technical specifications, a questionnaire and a template for both the ICS and AM data collections.

The IAIS’ AM comparability assessment is proceeding in line with the timeline communicated by the IAIS in November 2019 and the assessment methodology, process and governance as agreed upon by the IAIS.

Vicky Saporta, chair of the IAIS, said: “The work of the IAIS on the AM comparability assessment is driven by a commitment to deliver a technical, robust and transparent exercise, allowing stakeholders to understand the basis of the assessment and its conclusions. We are now entering the final phase, namely the technical analysis underlying the assessment. I would like to thank all the IAIS members and all participating insurers who worked diligently in recent months to provide the detailed inputs that will be informing our analyses.”

Related Articles