PUBLIC
Risk Assessment and Management
- Group-wide Supervision and ComFrame-
Yoshi Kawai
Secretary General, IAIS
IAIS-ASSAL Regional Seminar
Buenos Aires, Argentina, 22-24 November 2011
Group-wide Supervision
• ICP 23: Group-wide supervision
• Importance of group-wide supervision
• Supervision of group in totality
• Extension of legal entity requirements
• Specific requirements for insurance
groups
22-24 November
Buenos Aires
IAIS-ASSAL Regional Seminar
1
Group-wide Supervision in a Nutshell
Group-wide
supervisory assessment
GROUP-WIDE SUPERVISION FRAMEWORK (GSF)
- group-wide regulatory requirements Extension of legal entity requirements
I
II
Requirements related to group-wide supervision
environment
III
IV
V
VI
VII
Group-wide
solvency
Group-wide
governance
Group-wide
market conduct
Cross-border
Interplay with
legal entity
supervision
Financial
conglomerates
Nonregulated
entities
Capital
adequacy
Corporate
governance
Intermediaries
Role of groupwide supervisor
Relation to legal
entity requirements
Cross-sector
regulatory arbitrage
Non-operating
holding companies
(NOHCs)
Enterprise risk
management
Internal governance
and control
Conduct of business
Supervisory
recognition
Role of group-wide vs
legal entity supervision
Cross-sectoral
supervision
Internal models
Suitability of persons
Fraud
Non-regulated
operating
entities (NROEs)
Supervisory
colleges
Complexity of
group structure
Investments
Valuation for
solvency purposes
AML/CFT
Information
exchange
Delegation of tasks/
group-wide and
involved
supervisors
Preconditions for
group-wide supervision
22-24 November
Buenos Aires
IAIS-ASSAL Regional Seminar
2
ComFrame: the Aims
• establish a comprehensive framework for
supervisors to address group-wide activities and
risks and also set grounds for better supervisory
cooperation
• develop methods of operating group-wide
supervision of Internationally Active Insurance
Groups
• foster global convergence of regulatory and
supervisory measures and approaches
22-24 November
Buenos Aires
IAIS-ASSAL Regional Seminar
3
Multi-disciplinary Approach
Module 3
Qualitative
and
quantitative
requirements
22-24 November
Buenos Aires
IAIS-ASSAL Regional Seminar
4
Qualitative and Quantitative Requirements
Module 3 Qualitative and quantitative requirements
Principles of the corporate governance
framework, including risk management and
internal control systems
Element 1
Element 2
Element 3
Element 4
Element 5
5a.
5b.
5c.
5d.
Element 6
Element 7
22-24 November
Buenos Aires
Enterprise risk management
Liabilities/technical provisions and
assets/investments
Valuation
Capital adequacy
Total balance sheet approach
Capital required
Available capital resources
Capital adequacy assessment
Calibrations and specific measurements
regarding quantitative elements
Reconciliation and recognition
IAIS-ASSAL Regional Seminar
5
Must Take-aways
• It is important to assess and manage
the risk of insurers at the group level
• Cooperation between the supervisors
are necessary
• IAIS’s answer to the supervision of
internationally active insurance
groups is the ComFrame
22-24 November
Buenos Aires
IAIS-ASSAL Regional Seminar
6
Thank you very much!
Any questions?
www.iaisweb.org
yoshihiro.kawai@bis.org
22-24 November
Buenos Aires
IAIS-ASSAL Regional Seminar
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Remaining of the speaking notes from the page 2 is in
this page’s note section.
This slide is not to be displayed in the actual
presentation.
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Buenos Aires
IAIS-ASSAL Regional Seminar
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Remaining of the speaking notes from the page 5 is in
this page’s note section.
This slide is not to be displayed in the actual
presentation.
22-24 November
Buenos Aires
IAIS-ASSAL Regional Seminar
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