The International Association of Insurance Supervisors (IAIS) held its Global Seminar in Dubrovnik last week, as it prepares to expose for comment criteria for assessing whether the AM is comparable to the IAIS’ Insurance Capital Standard (ICS).
At the seminar the American Property Casualty Insurance Association (APCIA) reiterated its strong support for the US-developed Aggregation Method (AM) for group capital assessment.
The purpose of the AM is to create a common language for supervisory discussions of group solvency of Internationally Active Insurance Groups and to enhance global convergence among group capital standards.
APCIA’s senior vice president, Robert Gordon, said: “American insurers support the U.S. Aggregation Method for measuring precisely where an insurance group is holding its capital to provide insurance supervisors with tools to pinpoint where and when financial problems may arise.”
“The AM is based on the experience and expertise of over 150 years of U.S. state insurance regulation, which has helped create a dynamic and innovative competitive private insurance marketplace for consumers. Any comparability assessment with the ICS must include consideration of qualitative regulatory factors and not be a purely quantitative analysis and needs to recognize the successful regulatory approaches of the top insurance markets.”
APCIA says it looks forward to participating in the Global Seminar, and strongly supports the IAIS’ work to implement its holistic framework for assessing systemic risk in the insurance industry. APCIA also urges the IAIS to recommend the elimination of the designation of specific insurance groups as systemically important to the Financial Stability Board.
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