IAIS Update

2013 annual meeting


Chinese Taipei hosted the 20th annual International Association of Insurance Supervisors (IAIS) annual conference. International regulators gathered to discuss hot topics with industry members and work to set new standards for the industry, including on items such as ComFrame, group supervision and capital requirements.

The Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame) was a focus of the conference. IAIS Executive Committee Chair, Peter Braumüller, provided a strong defense of the recent inclusion of the global insurance capital standards (ICS) to be developed in 2016 and announced the immediate beginning of field testing for ComFrame. ICS implementation is scheduled for 2019.

Differences between U.S. state insurance regulators and some of their international counterparts were still evident, especially on topics like direct holding company supervision and insurance capital standards. This did not necessarily mean the state regulators were the only ones concerned about the global regulatory construct. Some industry representatives, both from the United States and from Europe, expressed concern about the rush to create the ICS and some proposed aspects of ComFrame.

New standards ranged from the backstop capital requirements (BCR) to higher loss absorbency requirements (HLA) to ICS not yet created but set to take effect soon, all while the IAIS is still working on developing ComFrame and the framework for the supervision of Global Systemically Important Insurers (G-SIIs). Uncertainty over what exactly was to come heightened, but with that came the certainty that change was finally here.

Topics include:
  • Braumüller lays out roadmap at ComFrame Observer Dialogue
  • ComFrame consultation comments due December 16; field testing begins
  • ComFrame panel discussed alphabet soup of proposed capital standards
  • What is ComFrame?
  • Observers have mixed reaction to ComFrame draft
  • If capital is the answer, do insurance regulators have the wrong question?
  • Panelists discuss capital concerns and consistent standards
  • IAIS announces structural changes
  • Vaughan named IAIS Distinguished Fellow

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