1. Systemic Risk in Insurance
Elise Liebers
Acting Chair Financial Stability and Technical Committee
IAIS, Old Windsor June 2017

2. Work to date
2013
The IAIS developed an initial assessment methodology to identify any insurers whose distress or disorderly failure, because of their size, complexity and interconnectedness, would cause significant disruption to the global financial system and economic activity. Under this methodology, the strongest weight in the assessment is put on interconnectedness and what was coined at the time non-traditional, non-insurance (NTNI) activities
2013/2014
Development of G-SII Policy Measures: Basic capital requirement as a basis for HLA, Systemic Risk Management Plan, Liquidity Management Plan
2016
Revision of entity-based G-SII Assessment Methodology
Clarification of the notion of NTNI activities
Disentangling of conceptual overlap of interconnectedness and NTNI by focussing on the main transmission channels, i.e. asset liquidation and macroeconomic exposure

3. G-SII Data Collection – An Overview
Categories
Indicators
Process / Phases
Phase I: Data Collection
Size
Phase IIA: Data Validation
Global Activity
Phase IIB: Data Analysis
Interconnectedness
Phase III: Discovery Phase
Participating insurers: I. Group total assets >= 200 $bn and > 0% GWP outside of home jurisdiction. OR II. Group total assets >= 60 $bn and > 5% GWP outside of home jurisdiction.
Asset liquidation
Phase IV: Exchange of Information
Phase V: Recommendation to FSB + Disclosures
Substitutability
Currently 9 insurers identified as G-SIIs
Assessment based on the 2016 G-SII Updated methodology

4. 2017 Data Collection Exercise
Execution of the 2016 Updated Methodology started in March 2017 (Annual Data Collection, Phase I);
Smoother process of data collection using clearer definitions;
Analysis on-going following the current methodology based on quantitative and qualitative considerations;
Pursuant to the current methodology, the IAIS will again release information to the public after the 2017 Data Collection Exercise.

5. Questions?