FSB publishes the 2014 Update of the G-SII List
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- In November 2011 the Financial Stability Board published an integrated set of policy measures to address the systemic and moral hazard risks associated with systemically important financial institutions (SIFIs). In July 2013, the FSB, in consultation with the International Association of Insurance Supervisors (IAIS) and national authorities, identified an initial list of nine global systemically important insurers (G-SIIs), using an assessment methodology developed by the IAIS, and the policy measures that apply to them.
- The July 2013 report noted that the group of G-SIIs would be updated annually based on new data and published by the FSB each November, starting from November 2014. The report also indicated that in 2014 a decision would be made on the G-SII status of, and appropriate risk mitigating measures for, major reinsurers.
- The IAIS has submitted to the FSB its annual G-SII assessment exercise. Following this, the FSB has consulted with the IAIS and national authorities and has decided to identify for 2014 the nine G-SIIs identified in 2013 and to postpone a decision on the G-SII status of reinsurers, pending further development of the methodology.
- By November 2015, the IAIS will further develop the G-SII assessment methodology as needed to ensure, among other things, that it appropriately addresses all types of insurance and reinsurance, and other financial activities of global insurers. The revised G-SII assessment methodology will be applied from 2016.
- The IAIS continues its work to develop policy measures to be applied to G-SIIs, as described in the FSB's July 2013 press release, including the development by end-2015 of higher loss absorbency requirements, to be applied starting from January 2019 to those G-SIIs identified in November 2017 based on the methodology as further developed and on the most current available data. The IAIS published on 23 October 2014 the Basic Capital Requirements (BCR) to apply to all group activities, including non-insurance activities, of G-SIIs as a foundation for the higher loss absorbency requirements. When finalised, the risk based group-wide global Insurance Capital Standard (ICS) is expected to replace the BCR in its role as the foundation for higher loss absorbency requirements.
Notes to editors
The G20 Leaders at the Seoul Summit in 2010 endorsed the FSB policy framework for reducing the moral hazard of SIFIs and at the Cannes Summit in 2011 endorsed an integrated set of policy measures to address the risks to the global financial system from SIFIs,which implement critical elements of the SIFI framework.
The FSB has endorsed the IAIS assessment methodology for identifying global systemically important insurers and the policy measures that will apply to them, published by the IAIS on 18 July 2013: Global Systemically Important Insurers: Initial Assessment Methodology and Global Systemically Important Insurers: Policy Measures. In July 2013 the FSB identified an initial list of insurers (G-SIIs) as G-SIFIs, to be updated each year in November.
The FSB has been established to coordinate at the international level the work of national financial authorities and international standard setting bodies and to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies in the interest of financial stability. It brings together national authorities responsible for financial stability in 24 countries and jurisdictions, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts.
The FSB is chaired by Mark Carney, Governor of the Bank of England. Its Secretariat is located in Basel, Switzerland, and hosted by the Bank for International Settlements.