IAIS – Public Consultation on ICP 14 (Valuation) and ICP 17 (Capital Adequacy)

The International Association of Insurance Supervisors (IAIS) has launched a public consultation on the Insurance Core Principles (ICPs).

ICPs are the fundamental principles for insurance – adopted for the first time in 2011, and from time to time updated – that represent, on a global level, standards and guidelines adopted in the field of insurance supervision, which lend towards maintaining high supervisory standards among IAIS members.

The public consultation launched by the IAIS focused:

  • On ICP14 (Valuation), which regulates the recognition, cancellation and valuation of assets and liabilities in order for risks to be properly detected;
  • On ICP 17 (Capital Adequacy), which establishes capital adequacy requirements for solvency purposes, allowing insurers to absorb any unexpected losses and provide for different degrees of supervisory intervention.

The aim of the consultation is to improve the coherence and readability of the above-mentioned ICPs (such as the terms “liquidation/resolutions”, which are now used and understood more clearly)

IAIS invites interested parties to submit any eventual comments by 21 September 2023 using the appropriate section available on the IAIS website.