Systemically Important Insurers Global List 2016

On November 3, 2015 the Financial Stability Board (FSB) issued the updated list of Global Systemically Important Insurers Global list for 2016 (G-SII): Aegon NV, the Dutch insurer has been added to the list while Generali has been deleted.

In 2013, the FSB identified an initial set of nine G-SII’s in 2013.  In 2013, the FSB, in consultation with IAIS and national authorities, identified an initial list of nine G-SIIs, using an assessment methodology developed by the IAIS.

The FSB will review the list annually using updated information and add or delete institutions as indicated by results of the assessment.

Evolving Insurance Regulation 2015

 

Initial_assessment_methodology_18_July_2013

 

Developing Effective Resolution Strategies and Plans for Systemically Important Insurers

Starting from November 2014. Insurers can be added and removed from the list according to the publicly available assessment methodology and based on the latest available data. Publication of the methodology ensures that firms are aware of the factors driving the assessment of systemic importance.

For 2015, after consideration of the IAIS’ annual G-SII assessment exercise and following consultation with the IAIS and national authorities, the FSB has identified nine primary insurers as G-SIIs, using end-2014 data and the methodology published by the IAIS in July 2013.

The FSB has reviewed the list each November since 2011.  The G-SII’s for 2016 are:

Aegon N.V.

Allianz SE

American International Group, Inc.

Aviva plc

Axa S.A.

MetLife, Inc.

Ping An Insurance (Group) Company of China, Ltd.

Prudential Financial, Inc.

Prudential plc.

 

Upon designation as a G-SII, the Requirement Deadline for completion of the following tasks (using start date of November 2015):

Establishment of Crisis Management Group (CMG)

Requirement Deadline = 6 months  (May 2016)

Development of recovery plan

Requirement Deadline = 12 months  (November 2016)

Systemic Risk Management Plan

Requirement Deadline = 12 months (November 2016)

Liquidity Management and Planning

Requirement Deadline = 12 months (November 2016)

Development of resolution plan (using resolution strategy/review within CMG

Requirement Deadline = 18 months (May 2017)

Agreement of institution-specific cross-border cooperation agreement

Requirement Deadline = 18 months (May 2017)

Conduct of resolvability assessment within the CMG

Requirement Deadline = 24 months (November 2017)

 

If you need some background, read The difference between Insurance Cos and banks. 

Also, there’s an article on MHDS on SIFI Designation, 

Also listed here for your review is the FSB’s 2016 List of Global Significantly Important Institutions (G-sii)

The International Association of Insurance Supervisors.

 

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