The International Association of Insurance Supervisors (IAIS) is seeking submissions on the draft criteria that will be used to assess whether the Aggregation Method provides comparable outcomes to the Insurance Capital Standard (ICS).

The AM measure – a standard for a group capital calculation developed by the US – is not part of the ICS.

In November 2017 the IAIS set out an agreement on the implementation of ICS Version 2.0, including a unified path to convergence of group capital standards in furtherance of its ultimate goal of a single ICS that achieves comparable outcomes across jurisdictions.

And in November 2019 the IAIS agreed on a process and timeline for developing criteria to assess whether the AM provides comparable outcomes to the ICS.

The IAIS began developing the draft comparability criteria in April last year, developing it in such a way that the AM is neither precluded at the outset as an outcome equivalent approach to the ICS for measuring group capital, nor given a free pass.

“Stakeholder feedback on the draft criteria is particularly important to provide a range of perspectives on this unprecedented area of work and gauge views on the appropriateness of the draft criteria,” IAIS said.

Closing date for submissions is August 15 Basel time.

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