Global Systemically Important Insurers: Updated Assessment Methodology
As part of its three-year review cycle, the International Association of Insurance Supervisors (IAIS) published an updated Assessment Methodology (2016 Methodology) for global systemically important insurers (G-SIIs). Revisions to the initial assessment methodology, which was first published in 2013, were informed by three previous designation exercises and public comments received on two IAIS consultation papers issued in November 2015.
The 2016 Methodology outlines a five-phase approach to the G-SII assessment process that includes fact-based qualitative and quantitative elements. The IAIS has modified certain indicators used in the initial assessment methodology to address issues related to indicator responsiveness, connection with systemic risk and data quality, including reliability (across both insurers and jurisdictions). In contrast to the initial methodology, the 2016 Methodology uses absolute reference values for derivatives trading (CDS or similar derivatives instrument protection sold), financial guarantees and reinsurance indicators. The 2016 Methodology also covers all types of insurance and reinsurance, and other financial activities of global insurers.