The report, Global Insurance Key Risks And Credit Trends Dominated By Low Interest Rates And Regulation Issues, identifies some of the key risks and comments on IAIS's identification of Globally Systemically Important Insurers (see our previous article on this topic).
"The consequences of being designated as a G-SII are unclear", says the report, "It will certainly involve a greater level of oversight, coordinated by the group's lead supervisor. It may also involve a capital buffer (as for G-SIBs), but in the absence of a global capital standard, the basis for such a buffer is questionable." (our italics).
The report also notes that insurers are "pleading" with IAIS to ringfence the systemically risky activities rather than apply heightened supervision and capital buffers to the whole G-SII group.
The final IAIS list of 'too big to fail' G-SIIs is due to be published in April.