ICP 15 Investments

The supervisor establishes regulatory investment requirements for solvency purposes in order for insurers to make appropriate investments taking account of the risks they face.


Basis for Establishing Regulatory Investment Requirements


15.1

The supervisor establishes regulatory investment requirements on the investment activities of the insurer.


Regulatory investment requirements regarding the asset portfolio


15.2
The supervisor requires the insurer to invest assets so that, for its portfolio as a whole:
  • assets are sufficiently secure and are held in the appropriate location for their availability;
  • payments to policyholders or creditors can be made as they fall due; and
  • assets are adequately diversified.


Regulatory investment requirements relating to the nature of the liabilities


15.3

The supervisor requires the insurer to invest in a manner that is appropriate to the nature and duration of its liabilities.


Regulatory investment requirements regarding risk assessability


15.4

The supervisor requires the insurer to invest only in assets where it can properly assess and manage the risks.

Regulatory investment requirements relating to specific financial instruments


15.5
The supervisor establishes quantitative and qualitative requirements, where appropriate, on:
  • the use of more complex and less transparent classes of assets; and
  • investments in markets or instruments that are subject to less governance or regulation.