7 January 2019
The significant costs insurers face when developing recovery plans — as well as the existence of other risk management tools — mean that insurance supervisors must have the flexibility to tailor rules.
GFIA therefore welcomes the International Association of Insurance Supervisors’ (IAIS) acknowledgement in its draft application paper on recovery planning of the need for supervisors to consider proportionality when determining such requirements.
However, GFIA warned that, while the paper provides some useful commentary that insurers and supervisors might use for their own purposes, it is highly and unnecessarily prescriptive regarding what companies should do and even how they should do it.
GFIA’s full submission to the IAIS’ consultation on its draft application paper is available here.