International Prudential Regulation

The UK’s prudential and conduct regulations for insurers are developed at the EU level, with additional requirements from UK bodies.

However, as part of the global regulatory response to the 2008/09 banking crisis, a suite of international regulatory standards is currently being developed by the International Association of Insurance Supervisors (IAIS), under direction from the Financial Stability Board (FSB).

This comprises:

• Common Framework (ComFrame) for the Supervision of Internationally Active Insurance Groups
• Insurance Capital Standards (ICS) for the supervision of large insurance groups that operate in a number of jurisdictions
• Insurance Core Principles (ICPs), relating to the supervision of insurers generally
• Global Systemically Important Insurers (G-SII) assessment methodology and policy framework, which forms part of the FSB’s broader framework for global systemically important financial institutions (G-SIFIs)

The development of these international standards is of relevance to UK insurers and their policyholders as it is likely to have an influence on future regulatory developments in the EU and UK.

You can find out more information on international prudential regulatory developments from the IAIS.