The International Association of Insurance Supervisors, IAIS, has set out its Roadmap for 2021-2022 despite Covid-19 without losing momentum on key reforms and the strategic objectives set out in the IAIS Strategic Plan 2020- 2024”.
The roadmap sets out the specific projects that the IAIS will undertake or continue during the next two years. “The IAIS will need to remain agile throughout 2021 by monitoring and responding to challenges, such as those arising from ongoing Covid-19 uncertainties, that may affect the effort of the association to achieve its objectives,” states the association.
The plan sets out the high-level goals and strategies of the IAIS – maintaining and adjusting its core functions of developing global standards, supporting implementation and contributing to global financial stability, while supporting its members to proactively respond to a period of rapid change in a global environment driven by technological innovation, shifts in consumer behaviour and societal challenges.
The roadmap explains that the IAIS has now shifted towards finalisation and implementation of agreed reforms. This includes revision of the Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame) by the end of the Insurance Capital Standard (ICS) monitoring period, to reflect implementation of the ICS as a prescribed capital requirement, criteria to assess whether the aggregation method provides comparable outcomes to the ICS, and implementation of the holistic framework for the assessment and mitigation of systemic risk in the insurance sector, and qualitative aspects of ComFrame.
According to the IAIS: “The Covid19 pandemic provides added impetus to continue to drive the finalisation and implementation of agreed reforms; in the case of the ICS monitoring, for example, the turbulence of the Covid-19 crisis has provided an opportunity to test the adequacy and robustness of this supervisory tool in times of market stress.”
It adds: “In fact, the Covid-19 pandemic is serving as a catalyst that is adding impetus and accelerating many of the key strategic themes identified in the Strategic Plan, including climate risk, technological innovation, cyber risk, issues of conduct and culture, and sustainable development. There are also new themes that have emerged from the Covid-19 crisis, such as the protection gap with respect to pandemic risk, and operational risk and resilience issues related to insurance supervision under a ‘new normal’ of increased remote working, remote supervision and an accelerated digitalisation of the insurance business model.”