Public Consultation on Issues Paper on roles and functioning of policyholder protection schemes (PPSs)
Background information
The IAIS has published its Issues Paper on the roles and functioning of policyholder protection schemes (PPSs). The issues paper provides an updated overview of global practices regarding PPSs and their roles in insurance resolution and related activities. This paper describes current practices for PPSs and is intended to serve as a guide for jurisdictions considering establishing a PPS or modifying an existing PPS.
This paper was developed as a follow-up to the “Issues Paper on policyholder protection schemes” that was published in October 2013. It builds on subsequent developments such as the adoption of the revised set of Insurance Core Principles (ICPs) and Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame) in November 2019.
Comments on the issues paper were sought from February to April 2023. More than 200 comments were received and the responses generally supported the provided guidance and practices in this paper. Several suggestions were also provided; those related to risk of moral hazard and market distortion caused by PPS, in particular, where PPS intervenes in recovery phase rather than in resolution and the importance of delineation of roles of supervisor/resolution authority and PPS.
The comments received and the IAIS’ responses are available at the bottom of this page, as well as the final Issues Paper on roles and functioning of policyholder protection schemes (PPSs).
A public discussion session will be held via webinar on 16 January 2024 at 14:00 – 15:30 CET to present the final issues paper and answer any questions from stakeholders.
Details and registration information can be found here.