The International Association of Insurance Supervisors (IAIS) has released for public consultation proposed options for the development of basic capital requirements for global systemically important insurers (G-SIIs).
The IAIS is seeking feedback on these options in order to inform an upcoming field testing phase and to further support the design and development of the basic capital requirements. A second public consultation is planned in 2014 after it is further developed and defined.
The IAIS released its assessment methodology and policy measures for G-SIIs in July.
The development of the basic capital requirements is the first step of a long-term project to develop risk-based, group-wide global capital standards. The second step is the development of higher loss absorption requirements to apply to G-SIIs, due to be completed by the end of 2015.
The HLA will build on the BCR and address additional capital requirements for G-SIIs reflecting their systemic importance in the international financial system. The final step is the development of a risk-based group-wide global insurance capital standard (ICS), due to be completed by the end of 2016.
The consultation will be open for submissions until February 2014.
