IAIS issues paper on group-wide solvency assessment and supervision

March 9 2009: The International Association of Insurance Supervisors (IAIS) has released an Issues Paper on Group-Wide Solvency Assessment and Supervision. The financial crisis has served to emphasise the importance of supervisors taking both a solo and group-wide approach to supervision. The paper elaborates on challenges from a group-wide perspective, including:

• intra-group transactions and gearing of capital

• fungibility of capital and transferability of assets

• complexity of group structures, including non regulated entities

• diversity of legal and regulatory frameworks and regulatory arbitrage

• measurement of risk dependencies and aggregation of risks

This paper informs the future IAIS work on the development of a comprehensive suite of supervisory papers on group-wide solvency assessment and supervision. The IAIS acknowledges that the financial crisis is evolving and that supervisory lessons are still emerging. Peter Braumüller, Chair of the IAIS Executive Committee, noted that “as the IAIS develops further papers on group-wide supervision, we will continue to remain vigilant and consider the lessons learnt from the financial crisis”.



(This is Press Release of IAIS)

IAIS takes action on G20 and FSF recommendations
Global reinsurers remain resilient amid financial crisis
IAIS steps up supervisory coordination efforts

CLICK FOR MORE INSURANCE RELATED STORIES
CLICK FOR SPECIAL SECTION ON GLOBAL FINANCIAL CRISIS
CLICK FOR MORE FEATURES & STORIES