IAIS 23rd Annual Conference Major Projects Update Panel Presentation on Resolution Working Group, Urs Halbeisen, Chair, ReWG Asunción, 10 November 2016

Loss absorbing capacity in resolution The IAIS has discussed: Is loss absorbing capacity, in addition to existing capital and other regulatory requirements, needed as a G-SII policy measure for resolution, including stabilisation, given the nature of the insurance market and supervision? In July 2016, the IAIS concluded that on the basis of the currently available information and analysis conducted by the ReWG so far, it would not establish for G-SIIs a common minimum standard for LAC in resolution at this time. Once facts have developed further, including the development of resolution strategies based on the Key Attributes requirements (including stabilisation tools), as well as the identification of critical functions and systemic interconnections for G-SIIs, the IAIS will reassess LAC in resolution.

Recovery and resolution – ICPs and ComFrame ICPs 12 (Winding-up and Exit from the Market) and 26 (Cross-border Cooperation and Coordination on Crisis Management) and ComFrame M3E3 are currently under review by ReWG. The respective drafts of ICP 12 and M3E3 were shared with Interested Stakeholders as well as IAIS Members in August asking for their input. More than 600 comments were received from 24 Interested Stakeholders and 9 IAIS Members. Main comments received relate to the following (see next slide).

Recovery and resolution – ICPs and ComFrame Roles of resolution authorities and the court (how these roles should be addressed in ICP 12/M3E3) Recovery and resolution (where recovery starts and where resolution does) Policyholder protection (how e.g. departure from pari passu and writing down of insurance liabilities should be dealt with in ICP 12 and/or M3E3) Resolution of groups and foreign branches (what should be provided in ICP 12 and M3E3 with respect to resolution of groups and branches) Powers available for resolution (which powers should be available for insurers that are not G-SIIs) Recovery and resolution planning for IAIGs