GFIA has today published its response to a consultation by the International Association of Insurance Supervisors (IAIS) on its draft application paper on macro-prudential supervision.
Overall, GFIA welcomes the reference made by the IAIS to, and the application of, the overarching concept of proportionality in macro-prudential supervision.
However, the IAIS should put more emphasis on the assessment of sector-wide vulnerabilities, rather than the potential systemic importance of individual insurers.
GFIA also believes that supervisors should be able to base their assessments on their knowledge of insurers, the markets for which they are responsible and the data that they already have access to.
Moreover, GFIA stresses the importance of ensuring flexibility is embedded in the IAIS’ approach to macro-prudential supervision.