IAIS Announces Key Next Steps On Capital Standards

Internationally active insurance groups (IAIGs) will want to consider the implications of recent guidance from international insurance regulators on capital standards. These standards mandate the relevant amounts of capital that insurers, together with their affiliates, will be required to hold in order to conduct business.

The International Association of Insurance Supervisors (IAIS) has identified its key projects and activities in connection with its Common Framework for the Supervision of IAIGs (ComFrame), including its insurance capital standard (ICS). These next steps are set forth in the IAIS' 2023-2024 Roadmap, issued on Jan. 11, which lays out the IAIS' two-year workplan to address risks and trends in the insurance sector. The Roadmap is oriented around five key high-level goals, one of which is "setting and maintaining globally recognized standards," including capital standards.