Insurance regulators around the world are continuing their efforts to modernize insurance solvency regulation.
In Europe, following repeated setbacks and delays in implementation, it now appears that Solvency II is firmly on track to go live on January 1, 2016. However, much work remains to finalize the details of the regulations and technical guidance.
In the United States, the National Association of Insurance Commissioners (NAIC) began its Solvency Modernization Initiative (SMI) in 2008 as a response to the financial crisis. Since then, the NAIC has completed various aspects of SMI and is continuing work on further developments with respect to the US insurance solvency regulatory framework.
On the global level, the International Association of Insurance Supervisors (IAIS) has been developing a “Common Framework for the Supervision of Internationally Active Insurance Groups” (ComFrame) since 2010. Within ComFrame, the IAIS is currently working on establishing the basic capital requirements (BCR) for global, systemically important insurers (G-SIIs). BCR will be the foundation for Higher Loss Absorption (HLA) requirements for G-SIIs, which will be developed next by the IAIS. IAIS’ ultimate goal is to develop risk-based global insurance capital standard for internationally active insurance groups as a part of ComFrame.
Please join Colin Scagell and Vikram Sidhu as they discuss developments with respect to Solvency II—including an overview of the current position and the key aspects and guidance on how the UK regulator, the Bank of England’s Prudential Regulation Authority, is approaching the path to implementation—and provide an update on solvency modernization developments in the United States and at the IAIS.