Responding to today’s announcement from the International Association of Insurance Supervisors (IAIS), Hugh Savill, Director of Regulation, Association of British Insurers, said:
“The ABI welcomes the International Association of Insurance Supervisors announcement of a two-phased approach to the implementation of the Insurance Capital Standard. The five year monitoring period will allow IAIS to continue to test and refine the Standard, resulting in a more appropriate and workable approach. Equally important the confirmation that insurers will be able to use internal models is a significant step in the right direction and will allow for more a more accurate reflection of insurers’ risk profiles. This breakthrough illustrates the active role played by the Bank of England in international regulation, and the progress made under Victoria Saporta’s leadership at the IAIS.
“The ABI looks forward to continuing to work with the IAIS on the development of the ICS.”