IAIS Recent Developments IAIS Recent Developments
Hyderabad, 16 November 2005Yoshi Kawai – Secretary General
International Association of Insurance Supervisors (IAIS)Website: www.iaisweb.org
IAIS Recent Developments IAIS Recent Developments 2November 2005
Yoshi Kawai
OverviewOverview
1. IAIS Annual Conference 2005
2. Insurance Core Principles and Supervisory Framework
3. Solvency Requirements
IAIS Recent Developments IAIS Recent Developments 3November 2005
Yoshi Kawai
OverviewOverview
1. IAIS Annual Conference 2005
2. Insurance Core Principles and Supervisory Framework
3. Solvency Requirements
IAIS Recent Developments IAIS Recent Developments 4November 2005
Yoshi Kawai
IAIS Standard SettingIAIS Standard Setting
Core Principles
Core Principles
Principles
Supervisory Standards
Guidance & Issues Papers
Principles
Supervisory Standards
Guidance & Issues Papers
IAIS Recent Developments IAIS Recent Developments 5November 2005
Yoshi Kawai
Contents Revised ICPs
1. Introduction Reason for supervision, Scope of ICPs, Implementation & Assessment
2. Conditions ICP 1: Conditions for effective insurance supervision
3. The supervisory system
ICP 2: Supervisory objectives
ICP 3: Supervisory authority
ICP 4: Supervisory process
ICP 5: Supervisory cooperation and information sharing
4. The supervised entity ICP 6: Licensing
ICP 7: Suitability of persons
ICP 8: Changes in control and portfolio transfers
ICP 9: Corporate Governance
ICP 10: Internal control
2.12.1 ICPs’ Structure & Content ICPs’ Structure & Content
IAIS Recent Developments IAIS Recent Developments 6November 2005
Yoshi Kawai
Contents Revised ICPs
5. Ongoing supervision ICP 11: Market analysis
ICP 12: Reporting to supervisors and off-site monitoring
ICP 13: On-site inspection
ICP 14: Preventive and corrective measures
ICP 15: Enforcement or sanctions
ICP 16: Winding-up or exit from the market
ICP 17: Group-wide supervision
6. Prudential requirements
ICP 18: Risk assessment and management
ICP 19: Insurance activity
ICP 20: Liabilities
ICP 21: Investments
ICP 22: Derivatives and similar commitments
ICP 23: Capital adequacy and solvency
2.12.1 ICPs’ Structure & Content ICPs’ Structure & Content
IAIS Recent Developments IAIS Recent Developments 7November 2005
Yoshi Kawai
Contents Revised ICPs
7. Markets and consumers
ICP 24: Intermediaries
ICP 25: Consumer protection
ICP 26: Information, disclosure & transparency towards the market
ICP 27: Fraud
8. AML/CFT ICP 28: Anti-money laundering, combating the financing of terrorism
Annex 1 References to other IAIS principles, standards and papers
Annex 2 Assessment methodology
2.12.1 ICPs’ Structure & Content ICPs’ Structure & Content
November 2005Yoshi Kawai
2.2 Framework for Insurance 2.2 Framework for Insurance SupervisionSupervision
the insurance sector and insurance supervision
basic conditions for the effective functioning of
financial governance market conduct
supervisory assessment and intervention
the insurance supervisory authority
preconditions
regulatoryrequirements
supervisory action
LEVEL 1
LEVEL 2
LEVEL 3
the insurance sector and insurance supervision
basic conditions for the effective functioning of
financial governance market conduct
supervisory assessment and intervention
the insurance supervisory authority
preconditions
regulatoryrequirements
supervisory
LEVEL 1
LEVEL 2
LEVEL 3
November 2005Yoshi Kawai
2.2 Framework for Insurance 2.2 Framework for Insurance SupervisionSupervision
basic conditions for the effective functioning of
financial governance market conduct
supervisory assessment and intervention
preconditions
regulatory
requirements
supervisory
action
LEVEL 2
LEVEL 3
the insurance sector and insurance supervisionpreconditions
the insurance supervisory authority
regulatory
requirements
supervisory
LEVEL 1
LEVEL 2
LEVEL 3
November 2005Yoshi Kawai
2.2 Framework for Insurance 2.2 Framework for Insurance SupervisionSupervision
market conduct
the insurance sector and insurance supervision
basic conditions for the
effective functioning of
financial governance market conduct
the insurance supervisory authority
preconditions
supervisory
action
LEVEL 1
LEVEL 2
LEVEL 3
the insurance sector and insurance supervision
basic conditions for the
effective functioning of
financial governance
supervisory assessment and intervention
the insurance supervisory authority
preconditions
Regulatory requirements
supervisory
LEVEL 1
LEVEL 2
LEVEL 3
November 2005Yoshi Kawai
2.2 Framework for Insurance 2.2 Framework for Insurance SupervisionSupervision
the insurance sector and insurance supervision
basic conditions for the
effective functioning of
financial governance market conduct
supervisory assessment and intervention
the insurance supervisory authority
preconditions
regulatory
requirements
LEVEL 1
LEVEL 2
the insurance sector and insurance supervision
basic conditions for the
effective functioning of
financial governance market conduct
supervisory assessment and intervention
the insurance supervisory authority
preconditions
regulatory
requirements
Supervisory action
LEVEL 1
LEVEL 2
LEVEL 3
IAIS Recent Developments IAIS Recent Developments 12November 2005
Yoshi Kawai
OverviewOverview
1. IAIS Annual Conference 2005
2. Insurance Core Principles and Supervisory Framework
3. Solvency Requirements
IAIS Recent Developments IAIS Recent Developments 13November 2005
Yoshi Kawai
3. Solvency Requirements3. Solvency Requirements
*
Public financial reporting
capital
liabilities
assets liabilities
Supervisory assessment of the financial position
value of assets for supervisory purposes
best estimate policy obligations
risk margin
capital requirement
liabilities
available
capital
assets liabilities and capital requirement
financial position
tec
hni
cal
pro
visi
ons
IAIS Recent Developments IAIS Recent Developments 14November 2005
Yoshi Kawai
www.iaisweb.org
International Association of Insurance Supervisors (IAIS) International Association of Insurance Supervisors (IAIS)
