The International Association of Insurance Supervisors (IAIS) has released its proposed assessment methods for identifying “global systemically important insurers” – companies so large that their failure could affect financial systems and economies.

The Basel-based association wants to use an “indicator-based” methodology similar to the Basel Committee’s approach to banks. This would involve collecting and assessing data and a process of supervisory judgement and validation.

The proposals are open for comment until July 31.

The move to identify and review supervision of banks and insurers is a response to the global financial crisis, which led to the US Government bailing out AIG.

The IAIS says there is little evidence that traditional insurance “either generates or amplifies systemic risk within the financial system or in the real economy”.