A push is afoot to impose new, international capital standards upon systemically important insurance companies, demands that echo those placed upon banks by the Basel Committee on Banking Supervision.
The International Association of Insurance Supervisors—a global standard setting body with a membership that includes insurance regulators and supervisors in 140 countries—concluded a public consultation on Aug. 21, a step towards finalizing new capital standards for “global systemically important insurers (G-SIIs)” and internationally active insurance groups as part of its forthcoming Higher Loss Absorbency (HLA) requirement. The current plan would have the HLA delivered to the G20 for endorsement in November 2015, applying to G-SIIs in 2019.
