The International Association of Insurance Supervisors (IAIS) approved seven goals in a new five-year plan at its AGM in Amsterdam last week.

The targets include assessing and responding to vulnerabilities in the insurance industry and enhancing financial stability and supervision.

In tackling vulnerabilities, the association says it will help supervisors develop macro-prudential surveillance with a focus on internationally active insurance groups by looking at insurers, the financial sector and the global economy.

To build financial stability it will collect annual data and supervisory judgements on potential globally systemically important insurers.

IAIS also aims to introduce a program for enhancing supervisory practices and to develop guidance on effective business supervision.

Other targets in the plan include development of a higher loss absorbency requirement for globally systemically important insurers by the end of next year.

The association wants to complete its common framework for internationally active insurance groups by the end of 2018.

IAIS members have elected German Federal Financial Supervisory Authority CEO for Insurance Supervision Felix Hufeld as their new Chairman, replacing Peter Braumüller from Austria.

Mr Hufeld says the association has plenty of work to do.

“During the next several years the association will continue and conclude many important projects, such as development of the first risk-based global insurance capital standard, as we further advance the IAIS’ role as the global insurance standard-setter and a key player in ensuring financial stability,” he said.