Insurance Core Principles, Standards, Guidance and Assessment Methodology
The ICPs are the highest level in the hierarchy of IAIS supervisory material and prescribe the essential elements that must be present in the supervisory regime in order to promote a financially sound insurance sector and provide an adequate level of consumer protection. Standards are directly under the ICPs in the hierarchy of IAIS supervisory material. Standards are linked to specific ICPs and set out key high level requirements that are fundamental to the implementation of the insurance core principles and should be met for a supervisory authority to demonstrate observance with the core principles. Guidance material typically supports the core principles and/or standards and provides detail regarding how to comply with or implement a core principle or a standard. Guidance material does not set out new requirements but rather describes what is meant by the requirement.
The ICPs were first issued on 1 October 2011. Individual core principles, with related standards and guidance, have been amended in subsequent years to reflect best practices, address changes to the insurance sector and supervisory requirements, align them with standards from other standard setting bodies, as well as to incorporate findings generated by the IAIS’ feedback loop between implementation activities and standard setting.
The most recent amendment, adopted on 8 November 2018, includes an updated ICP 6.
The assessment methodology is included in the Insurance Core Principles document. It was issued by IAIS on 1 October 2011 (as amended 12 October 2012 and 19 October 2013). In November 2017, a draft revised assessment methodology was released for information purposes only, awaiting final adoption in 2019. Observance of the Insurance Core Principles and their corresponding standards is assessed by the IMF and the World Bank.