Regulatory and supervisory tools that can be used to conduct effective consolidated group wide supervision. The primary concepts that apra uses to assess capital adequacy required capital, eligible capital, surplus capital and target surplus will, in principle. Regional regulatory developments is the third chapter in. Significant themes of the iais framework include group wide insurance supervision and consistency of regulatory frameworks across geographical jurisdictions. The iais has developed a group wide supervision framework including governance requirements and a riskbased capital standard for international insurers. Framework financial analysis handbook2014 annual2015 quarterly.
Guide adherence with the mandatory elements of the international professional practices framework. Without a group wide supervision framework, it is challenging for apra to appreciate how individual risks within a group interact, limiting the effectiveness of apras supervision of these groups. Tony chan associate director insurance authority of hong kong 29 march 2019. International events drive insurance regulatory reform. While most countries operated broadly under the same regulatory standards, differences emerged in supervisory approaches. However, a group wide approach to the regulation of insurance groups is not currently part of the insurance regulations in ghana. Concerns over reporting burden on groups of proposed. There are direct and indirect approaches to group wide supervision. If passed, the bill will create a legislative framework for the ia to perform effective group wide supervision and ensure that the insurance regulatory system in. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Participants will also gain awareness of key practical considerations in the implementation of a consolidated supervision framework, with special consideration to interagency and homehost principles. The framework has been abstracted from basel ii rules, a set of banking laws and regulations developed by the basel committee on banking supervision comprising the.
Naic symposium on supervision of internationally active insurance groups july 1516, 2010. Download pdf hong kong, 20 march 2020 aia group limited aia. Establish a comprehensive framework for supervisors to address group wide activities and risks and also establish principles for better supervisory cooperation in order to allow. This document builds upon the existing financial analysis handbook guidance and is being proposed to the financial analysis handbook e working group for. I mplementing groupwide supervision requires understanding. It is the first research report to contribute to the international association of insurance supervisors iais discussion on a common framework for the supervision of internationally active insurance groups comframe. Iais common framework for the supervision of internationally active insurance groups revised draft.
In order to eliminate redundant guidance and clarify lead state guidance, three chapters from group wide supervision were combined. Under this act, the osfi is responsible for regulating and. Michael hafeman thursday november 3 7 field of riskbased supervision. Figures below illustrate the three main types of group structures of a financial group. Group wide supervision enhancement of market conduct direct licensing regime of insurance intermediaries international cooperation 2. Element 2 group wide governance framework, including roles of the governing body and senior management of the head of the iaig, senior management and key control functions. This document builds upon the existing financial analysis handbook guidance and is being proposed to the financial analysis handbook e. Proposals for a common framework for the supervision of international insurance groups could increase the reporting burden on groups and risk confidential information being inadvertently released. Authority, which gives rise to the need for consolidated or group wide supervision by the other authority fthe home authority.
This document builds upon the existing financial analysis handbook guidance and is being proposed to. Financial analysis handbook national association of. Simon worked on the solvency ii programme, focusing on pillar 2 risk framework. The warnings come as the consultation on the current draft of the common framework for group wide supervision comframe closed today. Apra intends that the level 3 framework will initially be applied to eight conglomerate groups. Therefore, the sacssp and the department of social development initiated a process for the development of the supervision framework, consisting of a conceptual and contextual. Develop methods of operating group wide supervision of iaigs in order to make group wide supervision more effective and more reflective of actual business practices. Proposed icp 23 group wide supervision the supervisor supervises insurers on a legal entity and group wide basis. The momentum to develop a supervision framework within the social work profession in south africa has thus been propelled by the concern of various stakeholders.
Common framework for the supervision of internationally active insurance groups comframe comframe is a set of international supervisory requirements focusing on the effective group wide supervision of internationally active insurance groups iaigs. The bill seeks to amend the insurance ordinance cap. This report has been carried out under the programme on regulation and supervision progres of the geneva association. These include a group wide sustainability risk framework to identify and address. Risk assessment and management group wide supervision and comframe title. Citeseerx document details isaac councill, lee giles, pradeep teregowda. Apra releases framework for supervising conglomerates but. Financial analysis handbook, how certain sections e. The international association of insurance supervisors iais recently published an issues paper that discusses the challenges to group supervision and. Comframe includes a global insurance capital standard ics, which will be adopted in 2019 one year later than originally planned leading to its implementation in 2020. Group supervision national association of insurance. Supervisors cooperate and coordinate to avoid regulatory gaps and avoid unnecessary duplication. Insurance regulation in asia pacific global law firm.
Aia group welcomes group wide supervision framework. The geneva association response to the international association of insurance supervisors iais 20 draft common framework for the supervision of internationally active insurance groups comframe. Moving forward towards completion of the new framework, we insist on major stakes that we hope the. Groupwide risk and capital management of internationally. Groupwide consolidated supervision in bank and financial. State of play of the eba advice on the design of a new. Ppt riskbased%20supervision powerpoint presentation. This document builds upon the existing financial analysis handbook guidance and is being proposed to the financial analysis. The quality of financial sector supervision has emerged as a key issue from the financial crisis. Group capital adequacy as is the case for apras existing requirements, capital adequacy is an integral component of the proposed level 3 supervision framework.
Groupwide controls controls designed, implemented and maintained by group management over group financial reporting. Group wide supervision lead state insurance holding company system analysis guidance and procedures were updated to assist the analyst in the lead state analysis process. Most of all, it requires an independent supervisor with strength to withstand political pressure and interferences. The international response to this crisis has focused on the need for more and better regulations e. In october 2019, the insurance authority ia issued a stakeholder discussion paper discussion paper on proposals to update the approach to supervise insurance groups referred to as groupwide supervision gws. As a reaction to the increasing trend of insurers forming and participating in financial conglomerates and insurance groups, supervisory authorities are currently developing group wide solvency regulations. One of the key activities that the nic will undertake in the coming years is to implement a group wide supervisory framework. As the leading panasian life insurance group, aia created the aia survey on middle class hopes and aspirations to gain additional insights about the middle class and their priorities to strengthen our understanding of the middle class in the asiapacific region. With the 2012 comframe draft, the international association of insurance supervisors iais on 1 july 2012 presented a comprehensive version of the envisaged framework for the supervision of internationally active insurance groups iaigs. Conference on transatlantic insurance group supervision september 78, 2011. The regulation if a conglomerate provides and supervision of domestic such financial services as. The osfi was established in july 1987 by the office of the superintendent of financial lnstitutions act osfl act. The aia healthy living index is a multicountry study in. Groupwide supervision is difficult and requires multidisciplinary skills, dedicated resources and a comprehensive risk assessment process.
The following document has been adopted by the group solvency issues e working group as a summary of the us framework for group supervision as of august of 20. With the financial stability board fsb continuing to influence the iais work program, and two important consultations released in november 2015, it is clear that 2016 will be another. The basel framework is the full set of standards of the basel committee on banking supervision bcbs, which is the primary global standard setter for the prudential regulation of banks. Insurance group supervision april 2012, cipr newsletter. The geneva association supports the comframe objective of efficient and effective group wide supervision of internationally active insurance groups iaigs. How interests of insurance consumers are protected. The global and national insurance regulatory communities remain in turmoil as they develop rules and measures to prevent another global financial meltdown.
Solvency ii prudential framework is that standard in the european union. In the subsequent discussion and consultation, it became apparent that, although the industry was supporting the. Working group as a summary of the us framework for group supervision as of august of 20. This client update highlights some of the developments occurring at the national association of insurance commissioners 2010 fall national meeting held from october 16 to 21, 2010, in orlando, florida. Groupwide insurance supervision with an international flavor october 2011, cipr newsletter. Supervision of insurance groups that are in more than one country. Likewise, it is essential to achieve a global re gulatory framework. To help our clients navigate these areas, we have produced insurance regulation in asia pacific as part of our nrf institute, which provides an overview and practical checklist of ten common regulatory issues for insurance companies operating, or seeking to operate, in 20 jurisdictions across asia pacific.
Amongst others, the framework is aimed at addressing the following supervisory objectives. The list of acronyms and abbreviations related to gsf groupwide supervision framework. Basel ii accord comes into force, banks safe and sound. Fwd group supports bill to enhance groupwide regulatory. Research into design and practicability of a common assessment framework for insurance group supervision author. Hong kong, 20 march 2020 fwd group fwd today gave its full support to the insurance amendment no. Iais comframe to close gap in insurance group supervision. Legislative framework for groupwide supervision of insurance groups. Solvency assessment for insurance groups in the united. Immediately prior to his current role, he was responsible for the group wide operational risk framework. Legislative framework for groupwide supervision of. Group wide controls controls designed, implemented and maintained by group management over group financial reporting. The common framework for the supervision of internationally active insurance groups comframe, adopted in november 2019, establishes supervisory standards and guidance focusing on the effective group wide supervision of. A common framework for supervision of insurance groups.
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