Insights

IAIS Update

2013 annual meeting

Chinese Taipei hosted the International Association of Insurance Supervisors (IAIS) annual conference in November 2013.

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.

IAIS update: 2013 annual meeting
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