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. Conference on transatlantic insurance group supervision september 78, 2011. Framework financial analysis handbook2014 annual2015 quarterly. Groupwide supervision is difficult and requires multidisciplinary skills, dedicated resources and a comprehensive risk assessment process. Groupwide consolidated supervision in bank and financial. The ongoing debates over insurance regulatory reforms law360. 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. This document builds upon the existing financial analysis handbook guidance and is being proposed to. Risk assessment and management group wide supervision and comframe title. Banking, insurance and life insurance prudential standard.
Financial analysis handbook, how certain sections e. 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. Apra releases framework for supervising conglomerates but. Insurance regulation in asia pacific global law firm. This report has been carried out under the programme on regulation and supervision progres of the geneva association. Fwd group supports bill to enhance groupwide regulatory. Authority, which gives rise to the need for consolidated or group wide supervision by the other authority fthe home authority. In order to eliminate redundant guidance and clarify lead state guidance, three chapters from group wide supervision were combined.
Solvency ii prudential framework is that standard in the european union. If a conglomerate provides and supervision of domestic. Guide adherence with the mandatory elements of the international professional practices framework. Groupwide controls controls designed, implemented and maintained by group management over group financial reporting.
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. Basel ii accord comes into force, banks safe and sound. Legislative framework for groupwide supervision of insurance groups. 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. Michael hafeman thursday november 3 7 field of riskbased supervision. 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. 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. 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. 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. Group supervision national association of insurance. Under the direct approach, the supervisor has the necessary powers over the parent and other entities in the insurance group and can impose.
This document builds upon the existing financial analysis handbook guidance and is being proposed to the financial analysis handbook e. I mplementing groupwide supervision requires understanding. Ppt riskbased%20supervision powerpoint presentation. Aia group welcomes group wide supervision framework. Simon worked on the solvency ii programme, focusing on pillar 2 risk framework. Insurance group supervision april 2012, cipr newsletter. The international association of insurance supervisors iais recently published an issues paper that discusses the challenges to group supervision and. Proposed icp 23 group wide supervision the supervisor supervises insurers on a legal entity and group wide basis. Group wide controls controls designed, implemented and maintained by group management over group financial reporting. Solvency assessment for insurance groups in the united. 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. Groupwide risk and capital management of internationally. 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. Amongst others, the framework is aimed at addressing the following supervisory objectives.
The primary concepts that apra uses to assess capital adequacy required capital, eligible capital, surplus capital and target surplus will, in principle. 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. One of the key activities that the nic will undertake in the coming years is to implement a group wide supervisory framework. The aia healthy living index is a multicountry study in. Group wide supervision enhancement of market conduct direct licensing regime of insurance intermediaries international cooperation 2. Working group as a summary of the us framework for group supervision as of august of 20.
However, a group wide approach to the regulation of insurance groups is not currently part of the insurance regulations in ghana. The international response to this crisis has focused on the need for more and better regulations e. The global and national insurance regulatory communities remain in turmoil as they develop rules and measures to prevent another global financial meltdown. This document builds upon the existing financial analysis handbook guidance and is being proposed to the financial analysis. Most of all, it requires an independent supervisor with strength to withstand political pressure and interferences. 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. Significant themes of the iais framework include group wide insurance supervision and consistency of regulatory frameworks across geographical jurisdictions. Download pdf hong kong, 20 march 2020 aia group limited aia. The osfi was established in july 1987 by the office of the superintendent of financial lnstitutions act osfl act. Concerns over reporting burden on groups of proposed. 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. The geneva association supports the comframe objective of efficient and effective group wide supervision of internationally active insurance groups iaigs. Regional regulatory developments is the third chapter in.
Naic symposium on supervision of internationally active insurance groups july 1516, 2010. While most countries operated broadly under the same regulatory standards, differences emerged in supervisory approaches. A common framework for supervision of insurance groups. 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. Supervisors cooperate and coordinate to avoid regulatory gaps and avoid unnecessary duplication. These include a group wide sustainability risk framework to identify and address. In the subsequent discussion and consultation, it became apparent that, although the industry was supporting the. 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. 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. Iais common framework for the supervision of internationally active insurance groups revised draft. Legislative framework for groupwide supervision of. Moving forward towards completion of the new framework, we insist on major stakes that we hope the. Likewise, it is essential to achieve a global re gulatory framework. 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.
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. The iais has developed a group wide supervision framework including governance requirements and a riskbased capital standard for international insurers. Citeseerx document details isaac councill, lee giles, pradeep teregowda. 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. Groupwide insurance supervision with an international flavor october 2011, cipr newsletter. The warnings come as the consultation on the current draft of the common framework for group wide supervision comframe closed today. 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. Tony chan associate director insurance authority of hong kong 29 march 2019. The bill seeks to amend the insurance ordinance cap. The list of acronyms and abbreviations related to gsf groupwide supervision framework. The regulation if a conglomerate provides and supervision of domestic such financial services as. Figures below illustrate the three main types of group structures of a financial group. 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.
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. Group capital adequacy as is the case for apras existing requirements, capital adequacy is an integral component of the proposed level 3 supervision framework. How interests of insurance consumers are protected. Regulatory and supervisory tools that can be used to conduct effective consolidated group wide supervision. Research into design and practicability of a common assessment framework for insurance group supervision author. Apra intends that the level 3 framework will initially be applied to eight conglomerate groups. International events drive insurance regulatory reform. Iais comframe to close gap in insurance group supervision. Financial analysis handbook national association of. 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. Program agenda consolidated supervision dilijan, armenia. 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.