The Financial Stability Board (FSB), in consultation with the IAIS and national authorities, has identified in 2016 nine insurers as G-SIIs as part of its annual identification process of global systemically important financial institutions (G-SIFIs).
The 2016 of global systemically important insurers (G-SIIs) list is based on a recommendation made by the IAIS using end-2015 data. The insurers on the 2016 G-SII list remain the same as those on the 2015 list.
G-SIIs will be subject to the following internationally agreed standards:
-
Higher loss absorbency (HLA), the initial development of which was published by the Association of Insurance Supervisors (IAIS) in October 2015. The HLA requirements, which will be revised to reflect further work by the IAIS on the G-SII assessment methodology, are scheduled to be applied starting from January 2019 to those G-SIIs identified in November 2017.
-
Enhanced group-wide supervision, including for the group-wide supervisor to have direct powers over holding companies and to oversee the development and implementation of a Systemic Risk Management Plan and a Liquidity Management Plan.
-
Group-wide recovery and resolution planning and regular resolvability assessments. The resolvability of each G-SII is also reviewed in a high-level FSB Resolvability Assessment Process (RAP) by senior regulators within the institution’s Crisis Management Group.
The IAIS is continuing work on its methodology and published Global Systemically Important Insurers: Updated Assessment Methodology in June 2016 following a consultation process launched in November 2015. The FSB looks forward to receiving in the first quarter of 2017 a workplan and timelines for the further work on the assessment methodology.
The IAIS is also exploring an activities-based approach to addressing systemic risk as a possible complement to the G-SII entity-based assessment approach. The FSB looks forward to receiving further updates on this work.
Press release
2016 list of global systemically important insurers
© FSB - Financial Stability Board
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article