PCI, IAIS Discuss Rules for Global Systemically Important Insurers
The clarification of certain rules, as well as information security, were among the topics discussed in two meetings this week.
Insurance Networking News, January 15, 2013
The Property Casualty Insurers Association of America (PCI) and the International Association of Insurance Supervisors’ (IAIS) Financial Stability Committee held a discussion on Monday regarding policy measures that would be applied to any company designated as a Global Systemically Important Insurer (G-SIIs).
David Snyder, PCI’s VP of international insurance policy, called for more time to clarify certain elements of the policy before finalizing the document.
"PCI urges further dialogue before the G-SII methodology and policy measures are finalized. There are many issues that need more definition and additional consultation will help avoid unintended negative consequences. For example, clarifying that insurance activities, whether traditional or not, do not pose systemic risk will help to avoid penalizing well-managed and well-regulated insurers, as that will ultimately harm consumers,” said Snyder.
As a follow-up, PCI participated in a ComFrame discussion today with the IAIS Technical Committee regarding confidentiality and valuation issues in the IAIS' project to develop a common framework for the supervision of internationally active insurance groups.
According to a PCI statement, Steve Broadie, PCI VP of financial policy, urged the IAIS to add additional protections to ensure that confidential information passed between insurer and regulator would not be at risk.
"ComFrame calls for many insurer disclosures to supervisors that must be better protected in order to protect the interests of insurers, their policyholders and the public," Broadie said. He also asked the IAIS to require that regulators give immediate notice to insurers when their confidential information is improperly disclosed in order to give the insurer an immediate opportunity to protect its interests.
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