The International Association of Insurance Supervisors (IAIS) is asking for comments on a paper that could shape regulators’ efforts to oversee multinational insurers for decades to come.
The “concept paper,” a skeleton for the Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame), could help the world’s insurance regulators oversee “internationally active insurance groups” (IAIGs) that may be part of large, diverse corporate groups, according to officials at the IAIS, Basel, Switzerland.
The IAIS includes regulators and supervisors from 190 jurisdictions in about 140 countries. IAIS members started the ComFrame project in response to the recent financial crisis, and they hope to complete work by July 1, 2013.
ComFrame drafters have drafted a number of “elements” in 5 “modules,” with some elements already close to completion, some scheduled to be complete by July 1, 2012, and the rest scheduled to be complete by July 1, 2013.
The modules are Scope of Application, Group Structure and Business, Qualitative and Quantitative Requirements, Supervisory Cooperation and Interaction and Jurisdictional Matters.
The Scope of Application module, for example, “is the basis of ComFrame in that it sets out the criteria and process of identification of IAIGs and the scope of supervision along with how insurance supervisors should interact with other sectoral supervisors where an IAIG is a financial conglomerate or is a sub-group within a financial conglomerate,” officials say.
ComFrame drafters ask commenters whether the current draft uses the right criteria to identify IAIGs, whether the proposed size thresholds are appropriate, and how much international activity ought to be required before a company is classified as an IAIG.
“Are there any justifiable examples of groups which do not meet the ComFrame Criteria that should be included in ComFrame and are there any justifiable examples of groups which meet the ComFrame Criteria that should be excluded from ComFrame?” officials ask.