ICP 9 Supervisory Review and Reporting

The supervisor uses off-site monitoring and on-site inspections to: examine the business of each insurer; evaluate its financial condition, conduct of business, corporate governance framework and overall risk profile; and assess its compliance with relevant legislation and supervisory requirements. The supervisor obtains the necessary information to conduct effective supervision of insurers and evaluate the insurance market.

Introductory Guidance


9.0.1

This ICP focuses on the general processes and procedures supervisors should have in place with respect to supervisory review and reporting. For the purpose of this ICP, off-site monitoring and on-site inspections are collectively referred to as “supervisory review”. Aspects of what supervisors may require or assess as part of supervisory review and reporting on specific areas (such as solvency, governance, conduct of business) are dealt with in other ICPs with respect to those ICPs’ specific areas of focus.

9.0.2
Supervision is a dynamic process that includes:
  • developing and implementing a framework for supervisory review and reporting;
  • developing and executing supervisory plans for insurers;
  • analysis of reported and other relevant information;
  • feedback and dialogue between the supervisor and insurers;
  • intervention, including any preventive/corrective measures or sanctions, where necessary;
  • follow-up (including updating the supervisory framework and/or adjusting the frequency and intensity of assessment under supervisory plans); and
  • cooperation and coordination with other relevant supervisors and authorities where necessary.

CF 9.0.a
The group-wide supervisor engages with the Head of the IAIG and, in cooperation with other involved supervisors, carries out a supervisory review to assess the IAIG’s compliance with relevant legislation and supervisory requirements applicable at the level of the Head of the IAIG.

CF 9.0.a.1
This supervisory review may be conducted within the supervisory college (see ComFrame material under ICP 25 Supervisory Cooperation and Coordination).

CF 9.0.a.2
Cooperation with other involved supervisors includes them providing relevant information concerning the insurance legal entities within the IAIG that they supervise. It is the responsibility of the group-wide supervisor to assess the IAIG’s compliance with the relevant legislation and supervisory requirements applicable at the level of the Head of the IAIG.