The International Association of Insurance Supervisors (IAIS) might have a draft of methodology and criteria for identifying insurers that are “Globally Systemically Important Financial Institutions” (G-SIFI) ready by August.
Peter Braum?ller, chairman of the IAIS, Basel, Switzerland, talks about the IAIS G-SIFI criteria development time table in a letter addressed to Janice Hilchie, a representative for a group of insurance company associations.
The IAIS is working on the G-SIFI criteria project because the Group of 20 developed countries set up a Financial Stability Board (FSB), Basel, Switzerland. The board is supposed to come up with strategies for increasing the stability of the world financial system.
One FSB idea is to take steps to discourage G-SIFIs from taking excessive risk.
The FSB originally was hoping to come up with criteria for assessing problems at all types of troubled G-SIFIs by June, but the IAIS has been taking longer than originally hoped to develop criteria for G-SIFIs in the insurance industry.
The IAIS plans to talk with observers about its progress on the G-SIFI criteria project May 5, and, by that time, it should be able to provide an update on project timelines, Braum?ller says.
“The update will include information on a proposed data collection exercise which is now scheduled to commence in late June,” Braum?ller says. “The data collection should enable us to improve the methodology and complete it by early August.”
The IAIS will make the proposals available for public comments before finalizing them, Braum?ller says.