1. International Insurance Regulatory Issues
10th Annual Insurance Public Policy Summit
“Confronting New Challenges in U.S. and International Regulation”
Andrés Portilla
Director, Regulatory Affairs Department
March 12, 2014 1

2. Zurich Insurance Group Manulife Financial Allianz SE
List of Current IIF Insurance Members .
Swiss Re
Prudential plc
Zurich Insurance Group
Manulife Financial
Allianz SE
Reaseguradora Patria
Prudential Financial
Aflac
AIG
China Taiping Insurance Group Co.
MetLife
Aegon N.V.
Generali
China Life Insurance (Group)
AXA Group
Aviva plc
Ping An Insurance
MassMutual Life Insurance Company
Principal Financial Group
Currently the IIF has 19 insurance members headquartered in 10 countries, including all 9 G-SIIs designated in July 2013:

3. The Global Framework G20 FSB IOSCO IAIS BCBS
G20 Countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, EEUU and the European Union
G20
FSB
(Financial Stability Board)
IOSCO
IAIS
BCBS
(Basel Committee on
Banking Supervision)
(International Organization of Securities Commissions)
(International Association
of Insurance Supervisors)

4. International Regulatory Agenda
One key objective: to develop a harmonized, globally consistent regulatory framework for internationally active insurance groups
Two key players: Financial Stability Board (FSB) and the IAIS
Three main projects:
Basic Capital Requirement (BCR)
ComFrame (Common Framework for the Supervision of IAIGs)
Global Insurance Capital Standard (ICS)

5. Apply to All Other Insurers
Global Insurance Regulatory Framework Overview
G-SIIs
IAIGs
All Insurers
ICPs
Step 1: BCR
(to be developed by end of 2014)
Step 2: HLA(to be developed by end of 2015)
ComFrame expands on ICPs
ComFrame
Step 3: ICS
(to be developed by end of 2016)
Recovery and Resolution
Enhance Group-wide Supervision
G-SII Policy Measures
Capital Adequacy Component of ComFrame
BCR
HLA
ICS
ComFrame
ICPs
Apply to G-SII 
Apply to IAIG
TBD 
Apply to All Other Insurers

6. Global Systemically Important Insurers(G-SIIs)Policy Measures Overview
Introduction
On July 18, 2013, IAIS announced that it had developed a framework of policy measures for; however, the proposed HLA measures will be subject to further consultation before they are finalized in 2015 in advance of the proposed implementation date of 2019.
Enhanced Supervision
Recovery and Resolution
Higher Loss Absorbency
Components
Implementation Timeline
Time
Action
July 2013
Designation of the first G-SII cohort
July 2014
Crisis Management Groups (CMG) to be established for the first G-SII cohort
Systemic Risk Management Plan (SRMP) to be completed
End 2015
IAIS to develop implementation details for HLA that will apply to designated G-SIIs starting from 2019
November 2017
The FSB to designate the cohort of G-SIIs, based on the IAIS methodology and 2016 data, for which the HLA policy measure will apply, with implementation beginning in 2019
January 2019
G-SIIs designated in November 2017 to apply the HLA requirements

7. Basic Capital Requirements(BCR) and Higher Loss Absorbency(HLA)
As a foundation for HLA requirements for G-SIIs, the IAIS will develop straightforward, basic capital requirements to apply to all group activities, including non-insurance subsidiaries. The BCR is intended to balance between simplicity and risk sensitivity, as well as provide a more comparable foundation for the HLA than local capital requirements.
Based on the foundation of the BCR, the higher loss absorbency requirements will focus on systemic risks and non-traditional non-insurance (NTNI) activities as the second step towards the ICS. The HLA will be completed in 2015 and implemented to G-SIIs from 2019.
HLA
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
First BCR Consultation Ends
BCR Field Testing Starts
BCR Field Test Ends
Expert Inputs Concludes .
Second BCR Consultation Starts
IAIS approves
BCR Proposal
G20 Endorses BCR Proposal
Analysis on Field Test Results Concludes.
Second BCR Consultation Ends
FSB Reviews BCR Proposal
BCR 2014 Development Timeline

8. Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame)
Introduction
ComFrame is a set of international supervisory requirements focusing on the effective group-wide supervision of IAIGs. ComFrame is built and expands upon the high level requirements and guidance currently set out in the IAIS ICPs, which generally apply on both a legal entity and group-wide level.
ComFrame consists of the following three modules:
Module one: The Scope of ComFrame
Module two: The IAIG (including capital adequacy requirements)
Module three: The Supervisor (including establishment of supervisory colleges)
Three Modules of ComFrame
Development
2010 to Dec 2013
Field Testing
2014 to end of 2018
Implementation
starts in 2019
ComFrame Development Timeline

9. ICS Development Timeline
Global Insurance Capital Standards(ICS)
Introduction
On October 9, 2013, the IAIS announced that it is committed to develop a risk based ICS by the end of 2016, followed by a two-year period of testing and refinement with supervisors and IAIGs. The ICS is scheduled to be implemented beginning in 2019.
After completion, the ICS will be included in ComFrame replacing the content of Module 2 Element 5 Capital Adequacy Assessment.
The IAIS has committed to develop the ICS in the following three steps:
The first step is to develop ICS by end 2016.
The second step is to test and refine the framework by 2018.
The third step is to implement it globally starting in 2019.
Development Steps of the ICS
Development Phase
In three steps by the end of 2016
Testing and Refining
To the third quarter of 2018
Implementation
starts in 2019
ICS Development Timeline

10. International Insurance Regulatory Issues
10th Annual Insurance Public Policy Summit
“Confronting New Challenges in U.S. and International Regulation”
Andrés Portilla
Director, Regulatory Affairs Department 10