IAIS—Holistic Framework for Systemic Risk in the Insurance Sector: IAIS Issues Public Consultation Document Proposing Holistic Framework to Assess Systemic Risk in the Insurance Sector; FSB Will Not Engage in Identification of GSIIs in 2018.

Sullivan & Cromwell LLP - November 27, 2018

On November 14, 2018, the International Association of Insurance Supervisors published a public consultation document proposing a new Framework for assessing and mitigating systemic risk in the insurance sector. The Framework proposes an holistic approach to systemic risk by moving away from a binary approach that applies certain policy measures only to identified global systemically important insurers (“G-SIIs”), to an approach that proportionately applies enhanced policy measures to all activities within the insurance sector. In support of the proposed framework, the Financial Stability Board announced that it will not engage in an identification of G-SIIs in 2018.