4 February 2025
The Global Federation of Insurance Associations (GFIA) has responded to a International Association of Insurance Supervisor (IAIS) consultation on ancillary risk indicators in the Global Monitoring Exercise (GME).
In its response, GFIA reaffirms its support for the IAIS 2019 Holistic Framework, which it believes remains a ‘valid, useful and proportionate tool’ to assess systematic risk in the insurance sector.
However, GFIA argues that IAIS’ proposal to develop further ancillary indicators - which it aims will help assess systematic risk - has limitations and could in fact prove counter productive. It therefore invites the IAIS to consider the outcome of the GME in relation to the reporting burden it imposes, and that a thorough assessment should be conducted before demanding companies to offer additional data.