G-SII methodology

Public Consultation

Consultation: comments due by 25 January 2016 midnight Basel time (CEST)

Background

In July 2013, the IAIS developed an initial assessment methodology (the 2013 Methodology) to identify insurance-dominated financial conglomerates whose distress or disorderly failure, because of their size, complexity and interconnectedness, would cause significant disruption to the global financial system and economic activity.[1]  

As stated in the 2013 Methodology, the IAIS plans to evaluate every three years whether and, if so, the ways and extent to which the assessment methodology should be reviewed and revised.  This public consultation document outlines proposed revisions to the 2013 Methodology for global systemically important insurers (G-SIIs) and invites public comment on these revisions and related issues (Proposed Methodology).

The IAIS acknowledges the need to monitor developments and make changes to the assessment methodology as necessary.  In the near term, the ongoing and related IAIS work on the definition of Non-traditional Non-insurance (NTNI) activities and the Higher Loss Absorbency (HLA) requirement will be closely monitored and evaluated in the context of the Proposed Methodology.  Any changes to the NTNI definition and the HLA may well lead to a change in the Proposed Methodology.  Additionally, the work streams on the NTNI definition and the Proposed Methodology are interlinked with the HLA and, therefore, any change in either the NTNI definition or the Proposed Methodology will be considered in future versions of the HLA.

How to provide comments

The Consultation Tool is available below. 

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