2018年-FSB全球金融稳定委员会_Release_of_IAIS_proposed_holistic_framework_for_the_assessment_and_mitigation_of_systemic_risk_in_the_insurance_sector_and_implications_for_the_identification_of_G_2页_223kb

IAIS Proposed Holistic Framework for Systemic Risk Assessment and Mitigation in the Insurance Sector

Core Content

The International Association of Insurance Supervisors (IAIS) has proposed a holistic framework for the assessment and mitigation of systemic risk in the insurance sector. This framework aims to enhance the ability of supervisors to monitor and manage risks at the sector level, as well as within individual insurers. The Financial Stability Board (FSB) has welcomed this development and expressed its support for the Activities-Based Approach to systemic risk assessment, which is a key component of the framework.

Main Views

The proposed framework includes the following key elements:

• Global Annual Monitoring Exercise: IAIS will conduct an annual assessment to detect the build-up of systemic risk in the global insurance sector. This exercise will use the Activities-Based Approach, which focuses on identifying and monitoring specific activities and exposures that may contribute to systemic risk.

• Enhanced Supervisory Policy Measures: These include:

  • Macroprudential Surveillance: Supervisors will monitor sector-wide risks.
  • Enterprise Risk Management (ERM): Enhanced requirements for ERM will be implemented.
  • Liquidity Management: Improved liquidity management practices will be enforced.
  • Crisis Management and Recovery Planning: Insurers will be required to develop and maintain robust crisis management and recovery plans.

• Powers of Intervention: Supervisors will have the authority to:

  • Request reports on the management of systemic risk.
  • Impose restrictions on business activities.
  • Reinforce financial positions.
  • Set limits on large exposures.

• Implementation Assessment Mechanisms: IAIS will establish mechanisms to ensure the consistent application of the framework. This includes evaluating whether enhanced supervisory measures are embedded in legislation and applied in practice.

Key Information

• The FSB initially identified a list of nine global systemically important insurers (G-SIIs) in 2013 using an assessment methodology developed by IAIS. This list was updated annually, with the last update in 2016.
• In 2017, the FSB decided not to publish a new list of G-SIIs for 2018 and continued to apply the 2016 policy measures. The decision was based on the expectation that the IAIS would develop a more comprehensive Activities-Based Approach by 2018.
• The FSB will review the G-SII identification process in 2019 and 2022, depending on the progress and implementation of the holistic framework.
• The IAIS plans to refine the proposed framework based on public consultation feedback and will finalize it in 2019 for implementation in 2020.
• Until the framework is fully implemented, supervisors will continue applying existing enhanced measures as outlined in the IAIS consultation document.

Implications

The proposed framework represents a shift from a firm-based approach to a sector-wide approach in managing systemic risk in the insurance industry. This change may lead to a more proportional and effective application of supervisory measures. The Activities-Based Approach is expected to provide a more accurate and dynamic method for identifying systemic risks, which in turn could influence the identification of G-SIIs and the policy measures applied to them.

The framework also emphasizes transparency, consistency, and proportionality in the application of supervisory measures, ensuring that the insurance sector is better prepared to withstand and respond to systemic risks.