Guidance paper on the treatment of non-regulated entities in group-wide supervision
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The purpose of this paper is to encourage the establishment of sufficient supervisory power and authority to ensure that supervision has proper regard to all entities which may affect the overall risk profile and/or financial position of the group as a whole and/or the individual entities within the group; and to promote greater consistency between jurisdictions. The groups covered by this paper are those whose main activity is insurance, including reinsurance groups and insurance subgroups within a financial conglomerate. The paper describes the types of non-regulated entities, the risks to a group from non-regulated entities, the various approaches to supervision of non-regulated entities, and the key features of effective treatment of non-regulated entities in group-wide supervision.