IAIS reviews timeline for mitigation of systemic risk framework

Written by Adam Cadle

27/03/2020

The IAIS is to utilise the framework it has developed in recent years for forward-looking risk assessment to undertake a targeted assessment of the impact of COVID-19 on the global insurance sector, and will review the 2020 timelines for the implementation of the holistic framework for the mitigation of systemic risk in the global insurance sector.

The executive committee of the IAIS held a conference call on 26 March 2020 to outline its discussions of the impact of COVID-19, and said it will also review and adjust the timelines for the data collection for the ICS confidential reporting in 2020, as well as the aggregation method (AM) data collection being supported by the IAIS.

As a first step, the submission deadline will be extended to 31 October, to provide operational relief to participating insurers. In the current circumstances, submissions should be on a best Page 2 of 2 efforts basis. The IAIS will monitor the situation closely and propose additional adjustments if necessary. The workplan for development of high-level principles to inform the development of criteria by which to assess whether the AM provides comparable outcomes to the ICS will be adjusted to re-schedule the consultation previously planned for July 2020.

“The IAIS will continue to assess and address the implications of COVID-19 on the global insurance sector and is actively coordinating with the FSB and other standard setting bodies on cross-cutting financial system issues,” the body said.

“Further steps will be taken, as necessary, to coordinate the actions taken by IAIS members to mitigate the impact of COVID-19 on insurers, safeguard policyholders and contribute to the maintenance of financial stability.”

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