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, were 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.
In November 2019, the IAIS completed the multi-year process for reviewing and revising the Insurance Core Principles (ICPs).
The Assessment Methodology is included in the Insurance Core Principles document. It was issued by IAIS on 1 October 2011 and amended in November 2019. Assessment of a jurisdiction’s observance of the ICPs can facilitate effective implementation by identifying the extent and nature of strengths and weaknesses in a jurisdiction’s supervisory framework – especially those aspects that could affect policyholder protection and financial stability.
Assessments against the ICPs can be conducted in a number of contexts including:
self-assessments performed by the jurisdiction itself. These may be performed with the assistance of outside experts and/or followed by peer review and analysis;
reviews conducted by third parties; or
reviews in the context of the Financial Sector Assessment Program (FSAP) conducted by the International Monetary Fund (IMF) and World Bank