Iaigs and comframe the iais formally introduced the concept of comframe. On june 16, 2016, the iais also published a related paper titled systemic risk from insurance product. Liquidity risk is not a new concept within the suite of iais supervisory material. Comframe emerged from g8 major player the united states taking.
As noted above, the iais is developing an application paper on recovery planning, which we would argue is premature, as icp 16. Iais draft issues paper on the use of big data analytics in insurance attachment twoa. Comframe has undergone substantial revisions since it was first released as a concept paper last july and is now organised into four distinct modules. Active insurance groups comframe, iais leadership told. Common framework for the supervision of internationally. To view this article you need a pdf viewer such as adobe reader.
Regulatory and supervisory framework 73 75 introduction. Easily share your publications and get them in front of issuus. It is expected that comframe will help foster cooperation amongst supervisors and close regulatory gaps. Iais comframe concept paper consultation invitation to comment and questions members and observers are invited to provide input on. Groups comframe, which is out for public exposure from july to august 2012 2012 comframe dra l, opera onalizes. Enhanced insurance prudential standards and global capital regimes. Group capital methodology concepts discussion paper. Insurance europe welcomes the opportunity to comment on the overall draft comframe and the iais.
Comframe or gsii policy measures, including actual examples or case studies that help practical application. Iais comframe concept paper american academy of actuaries. Issues papers are primarily descriptive and not meant to create expectations on how supervisors should implement supervisory material. Approved submission of naic comments on the iais draft application paper on recovery planning.
Iaisinternational capital standard, comframe, holistic. This paper presents a general framework for the capital allocation model that minimizes insurance group risk. Once adopted, comframe will have an impact on reinsurance groups risk management policies. Comframe will be the practical operationalisation, elaboration and application of those icps with regard to iaigs. International association of insurance supervisors iais draft application paper on proactive supervision of corporate. The iais also previously published a draft application paper on. Naic group capital calculation recommendation adopted by. Global insurance supervision is changing monitor and prepare by sheetal kaura and kenneth mcivor. Solvency ii contribution to comframe the international association of insurance supervisors acknowledged the significance of the solvency ii framework to comframe, the proposed international standard for group supervision.
Public iais icps and comframe november 2019 page 5 of 390 acronyms alm assetliability management aml antimoney laundering cdd customer due diligence cft combating the financing of terrorism comframe common framework for the supervision of internationally active insurance. Iais comframe to close gap in supervision of insurance groups. Is comframe sufficiently structured and articulated to. Comframe was first introduced as a concept paper in july 2011, marking the end of the first year in. The idea behind this project, which is due for implementation in 2019, is to impose convergent prudential rules to internationally active insurance groups iaigs in order to prevent supervisory arbitrage. Definition of a group the paper as drafted does not sufficiently define or contemplate the different types of groups that exist. Iais publishes consultation paper on riskbased global insurance capital standard. The development phase of comframe began in 2010and a concept paper was issued for public consultation in 2011 draft comframe. G8 has looked to the iais as the appropriate global expert authority and thus has given the brief to the iais to push forward global prudential insurance supervision. Concept paper 1 july 2011 page 4 of 154 invitation for comments on comframe concept paper the iais is pleased to invite comments from members and observers, by 31 august 2011, on this concept paper, as explained in more detail under item 7. International association of insurance supervisors, financial services authority uk, national association of insurance commissioners us, bermuda monetary authority and the office of the superintendent of financial institutions canada were represented at the workshop.
Insurance group risk management model for the next. Iais, page 77 in january 2010, the iais executive committee approved the development of the common framework for the supervision of internationally active insurance groups comframe. International association of insurance supervisors. In december 20, the iais released a consulta on paper on bcr which was, at that me, in its early stages of development. The release of the concept paper is the first milestone in the threeyear development phase of comframe to be completed by 1 july 20. Commissioner anderson explained tha t following adoption of the revised icps and comframe, iais members will begin. The iais guidance paper also discusses factors to consider in the implementa on of a supervisory college framework, including its form and membership, the role and. Among other things, the two papers explain the iaiss abandonment of the concept of nontraditional noninsurance ntni and its replacement with a new framework for. Comframe concept paper comframe as supervisory response comframe serves to develop methods of operating groupwide supervision of internationally active insurance groups iaigs in order to make groupwide supervision more effective and more reflective of actual business practices establish a comprehensive framework for supervisors. The paper examines the concept of standalone subsidiarisation sas in the context of.
Key concepts of the euoriginated solvency ii framework found their. Icpcomframe 16, enterprise management for solvency risk purposes. Framework comframe was published for comment on 2 july 20122 and a final consultation is planned in 20 followed by a programme of impact assessments. The international association of insurance supervisors iais is a voluntary membership. Global insurance supervision is changing towers watson. Chair of the iais field testing task force 25 april 2014 table of contents background iais policy initiatives architecture of iais international supervisory requirements what is comframe. The global financial crisis greatly affected insurer management. The evolution of insurance regulation in the eu since 2005. Group capital methodology concepts discussion paper comframe development and analysis g working group november 16, 2014. The comframe report of the iais 4 shows that the iais regards the regulation of groups as a multidisciplinary approach for multilateral use. Common framework for the supervision of internationally active insurance groups 6 july 2011 the international association of insurance supervisors iais has published for comment a concept paper in relation to the iaiss development of a common framework for the supervision of internationally active insurance groups comframe. These comments have been prepared by the comframe task force of the insurance regulation committee, the members of which are listed in an appendix to this statement. Solvency ii and globally via the iais development of comframe.
Iais concept paper aaa comments general questions and comments. Adopted by the comframe development and analysis g working group. Iais discussions regarding the development of group capital requirements for internationally active insurance. Insurance core principles and common framework for the.
Iais regarding its common framework for the supervision of internationally active insurance groups concept paper, invitation for comments. Iais comframe and capital standards milestones 202019. Should you have any questions regarding this submission of comments, please contact the academy through tina getachew, senior policy analyst for risk. Attachment a iais aba consultation paper naic draft. Iais, issues paper on indexbased insurances par ticularly.
In the us, this focus has led to amendments to the insurance holding company system model act and model regulation that added a new requirement regarding filing enterprise risk management. Comframe will be a multilateral framework that reaches beyond the. The enormous losses sustained by american international groups derivative subsidiary are still fresh in our minds, and group risk management has recently become a. The iaa is pleased to be given the opportunity to provide input to the iais on its concept paper. After the initial stage of comframe implementation, the iais will shift its focus to assessment of implementation of comframe. Introduction and assessment methodology should better explain the concept of proportionality and. Icp 16 the iaa notes that within icp 16, especially its comframe. Comframe which will apply to all interna onally ac ve insurance groups iaigs.
A number of insurance entities in the difc are members of the iaig. Cash flow the cash flow concept follows the general methodology of asset adequacy testing for insurers. Common framework for the supervision of internationally active. The meeting of the comframe development and analysis e working group heard from regulators on current advances towards the development of the iais insurance capital standards ics, including the field testing process. Minutesinternational insurance relations g committee. Comframe common framework for the supervision of iaigs. The hogan lovells corporate insurance newsletter for november has been published. The iais formally introduced the concept of comframe. Issuu is a digital publishing platform that makes it simple to publish magazines, catalogs, newspapers, books, and more online. With the common framework for the supervision of internationally active insurance groups.
Based on iais materials the iais guidance paper, the icps, 2012 comframe draft for iaigs, feedback from iais members and the naic holding company and supervisory colleges best practices document, following is an outline of certain key functional and operational aspects regarding regulator attendance at and convening of supervisory colleges. Through comframe, the iais aims to establish a comprehensive framework for supervisors to address groupwide activities and risks of iaigs. Enhanced insurance prudential standards and global capital. Regulatorycapitalframeworkforsupervisedinsurancegroups.
A concept paper on the revised regulatory capital definition will be issued for. Concept paper request for comments 2012 request for comments jul. The iais issued its first exposure draft of the concept paper on comframe in july 2011 iais 2011. Naic comments on iais concept paper, common framework for the supervision of internationally active insurance groups the american academy of actuaries1 solvency committee is pleased to submit comments on the naics comframe concept paper draft us responses. Holistic framework for systemic risk in the insurance sector iais. The area of group regulation is part of the major initiatives of the iais. The cdawg unanimously approved a motion to develop a concept paper that proposes the. Icps are also available on the online it tool which provides convenient and flexible access to the material. Control function we note that the term control functions has been changed. Power of direction over qualifying parent undertakings by. The european unions role in international economic fora paper 8. However, i f counterparty exposure is evaluated, it.
This provides a roundup of uk, eu and international regulatory developments relevant to uk based. In the united status, industry insiders expect that, in addition to being declared gsiis, a number of. Corporate insurance newsletter november 2017 hogan. Iais consultation on revised insurance core principles. Insurance europe, 4th international insurance conference. In july, the iais published a concept paper relating to a common framework comframe for the supervision of internationally active insurance groups iaig. We strongly agree that policy measures currently in the icps and comframe, whether micro or. The insurance core principles icps, as adopted by the iais, are available on this page. Recovery and resolution plans for insurers practical law. Active insurance group comframe that are being advanced by the international association of insurance supervisors iais.
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