Insurance Core Principles and ComFrame
The Insurance Core Principles (ICPs) form the globally accepted framework for insurance supervision. They consist of Principle Statements, Standards and Guidance. The ICPs aim to promote consistently high supervisory standards in IAIS member jurisdictions. A robust supervisory system is essential for protecting policyholders and ensuring the stability of the financial system and should address the broad set of risks within, and posed by, the insurance sector.
The ICPs were first adopted in 2011 and have since been updated regularly to reflect insurance market trends and developments, updates related to standards and guidance developed by other standing setting bodies, outcomes of IAIS implementation assessment activities, recommendations from the G20, as well as other developments in the global financial system relevant to the supervision of the insurance sector. The ICPs were last updated in November 2019. During 2023 and 2024, the IAIS consulted upon revisions to certain ICPs related to valuation, capital adequacy, climate risk and the Holistic Framework. An updated set of ICPs incorporating these changes is planned to be adopted by year-end 2024.
The Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame) builds upon the ICPs and establishes supervisory standards and guidance specifically focused on the effective group-wide supervision of Internationally Active Insurance Groups (IAIGs). ComFrame is a comprehensive and outcome-oriented framework that provides both qualitative and, in a future phase, quantitative supervisory requirements tailored to the international activities and size of IAIGs. By providing supervisors with a common language for the supervision of IAIGs, ComFrame enhances coordination and helps address group-wide risks while avoiding supervisory gaps.
The IAIS adopted ComFrame in November 2019 and its implementation began in 2020.
FSI Connect : Introduction to ICPs
IAIS Secretary General Jonathan Dixon explains the rationale behind the ICPs, the key areas covered, the structure of the ICPs and how their observance can be assessed. The video forms part of FSI Connect, the e-learning platform of the Financial Stability Institute.
FSI Connect is available by subscription only to eligible public sector authorities. IAIS sponsors a number of FSI Connect licenses for distribution to its Members. Please contact us for further information.