Public Consultation: Application Paper on the Composition and the Role of the Board

Comment due by 13 August 2018

Background information:

Thank you for your interest in the Application Paper on the Composition and the Role of the Board.

The outcome of the Self-Assessment and Peer Review (SAPR) conducted by the IAIS in 2014 showed a need for more proactive supervision of governance by the insurance supervisors. The most common challenge to full observance of some of the standards concerning supervision of the Board activities were the robustness and frequency of the supervisor’s assessments of some aspects of the Board’s performance. Some of the issues identified in the SAPR were addressed by revision of ICP 7 (Corporate Governance), finalised in November 2015. The IAIS also noted from the SAPR that some challenges related to supervision of the Board’s composition and functioning should be addressed by providing supervisors with good practices and tools.

Considering particular challenges for achieving effectiveness in supervision of the Board, this Application Paper aims to provide additional material to help with the practical interpretation and application of selected standards and guidance of ICP 5 (Suitability of Persons) and ICP 7.

As an Application Paper, this paper represents IAIS supporting material and as such does not set requirements. It provides additional material related to ICPs, such as examples that may help practical application of IAIS supervisory material.

The IAIS is now seeking feedback on this draft Application Paper through public consultation. Feedback on this consultative document is invited by 13 August 2018 at 24:00 Central European Time. Feedback received by this deadline will enable the IAIS to further develop the paper for finalisation. After this deadline, the Consultation Tool will be closed and it will no longer be possible to submit any further comments.

In addition, a public background call will be held via teleconference on 16 July 2018 to discuss the draft Application Paper and receive public feedback. Click here for details.

How to provide feedback:

Please use the Consultation Tool available at the consultation page of the public section (accessed below) to provide your comments. Instructions for use are available when you access the Tool. Please note that only comments submitted through the Tool will be considered. All comments will be published on the IAIS website unless an option in the Tool to keep comments confidential is chosen.

Please note that some formatting (e.g. bullet points) may not be preserved when copying and pasting your comments into the Consultation Tool from other software such as Microsoft Word.