GFIA has published its response to a consultation by the International Association of Insurance Supervisors (IAIS) on Insurance Core Principle (ICP) 6 — changes in control and portfolio transfers.
GFIA welcomes the fact that supervisors may decide in certain cases, such as due to proportionality considerations, that approval of a portfolio transfer is unnecessary. In view of this, GFIA fully supports the introduction of the principle of proportionality throughout the guidance added to ICP 6.
However, GFIA raised concerns about the subjective nature of the grounds for denying a change of control. The assumption should be that a transfer is acceptable, unless certain conditions exist.