The International Association of Insurance Supervisors (IAIS), on 27 March 2020, published a press release about the measures it is taking to address the impact of COVID-19 on the insurance sector. This includes using the framework it has developed for forward-looking risk to undertake a targeted assessment of the impact of COVID-19 on the global insurance sector and postponing the development of supporting material, with public consultations generally deferred by at least six months. It also includes reviewing timelines for the implementation of the holistic framework for the mitigation of systemic risk in the global insurance sector as well as the insurance capital standard (ISC) reporting and the aggregation method (AM).

On 27 March 2020, the International Association of Insurance Supervisors (IAIS) published a press release about the measures it is taking to address the impact of COVID-19 on the insurance sector.

The IAIS acknowledged that COVID-19 and the steps taken to limit contagion are having a significant impact on the global economy and, consequently, on the financial system. Insurers are exposed on both sides of their balance sheets; on the liability side because of changes to interest rates as well as the potential increase in claims and on the asset side due to market volatility. Insurance also has an essential role to play during a pandemic event such as COVID-19, providing protections to individuals, households and businesses. However, insurers are generally well-capitalised with sophisticated risk management capabilities, which should help the sector as a whole to withstand the shocks associated with COVID-19.

The IAIS has agreed on the following initial adjustments to its work programme to provide operational relief to its member supervisors, insurers and other stakeholders:

• The IAIS will use the framework it has developed for forward-looking risk assessment to undertake a targeted assessment of the impact of COVID-19 on the global insurance sector.
• In consultation with the Financial Stability Board (FSB), the IAIS will review the 2020 timelines for the implementation of the holistic framework for the mitigation of systemic risk in the global insurance sector.
• The IAIS will review and adjust its timelines for collecting data for insurance capital standard (ISC) reporting and the aggregation method (AM). The deadline for submitting data has been extended to 31 October 2020. The planned July 2020 consultation on the development of high-level principles to inform the development of criteria to assess whether the AM provides comparable outcomes to the ICS will also be adjusted.
• The IAIS will postpone the development of supporting material, with public consultations generally deferred by at least six months.

The IAIS will continue to assess and address the implications of COVID-19 on the global insurance sector and further steps will be taken, as necessary, to coordinate the actions taken by IAIS members to mitigate the impact of COVID-19 on insurers, safeguard policyholders and contribute to the maintenance of financial stability.