Impact of COVID19 on The Insurance Market and The Central Bank Discussion

Description

Hi, you remember the the research that we just wrote a proposal about it where we gave a wider idea about the subject? Now we need to add a bit more on that show some data, variables and a littlie more details So in total will be 2-3 (including the original page attached) you may show some cross countries data in some variable that later we will write more about in details. Also there are a lot of papers that also writing a similar issue you might search and list them and show that I will use them in my future submition Also I will upload some papers and data could be very helpful and PLS add more. PLEZZ this is the most important paper as u know before so HIGH quality + accurate data + straight forward ideas ARE VERY IMPORTANT IN GRADING

16 attachmentsSlide 1 of 16attachment_1attachment_1attachment_2attachment_2attachment_3attachment_3attachment_4attachment_4attachment_5attachment_5attachment_6attachment_6attachment_7attachment_7attachment_8attachment_8attachment_9attachment_9attachment_10attachment_10attachment_11attachment_11attachment_12attachment_12attachment_13attachment_13attachment_14attachment_14attachment_15attachment_15attachment_16attachment_16.slider-slide > img { width: 100%; display: block; }
.slider-slide > img:focus { margin: auto; }

Unformatted Attachment Preview

EC 3.2
Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures (Update)
The following table is designed to facilitate information exchange between insurance supervisors on the estimated impact of COVID-19 on the
(re)insurance sector, on a best effort basis, and the regulatory, supervisory and other financial policy measures being taken in response by IAIS
Member authorities. Going forward, we ask that Members update this information on a continuous basis, as and when further supervisory
measures are taken. An adapted template to allow for direct capturing of this information will be rolled out by the beginning of the week
commencing on 6 April 2020.
This document consists of a compilation of all submissions received by Tuesday, 31 March 2020, 2 pm CET.
Individual responses have also been uploaded to the IAIS Members Extranet specific section focussing on COVID-19, as indicated in the guide
to the IAIS information-sharing template.
The IAIS survey supplements the FSB survey with questions designed to assess insurance sector-specific aspects of the COVID-19 impact and
appropriate responses. In order to support an effective cross-sectoral assessment of the impact of COVID-19 and regulatory, supervisory and
other financial policy measures being taken, the information submitted in response to the IAIS survey will be shared with the FSB unless
Members have specifically requested that the information is for IAIS Members only. Please note that we have also received a request from the
BIS (the IAIS’ host organisation) for the information to be shared with senior central bank stakeholders, through the eBIS website. Please let us
know any objections in this regard by close of business on Thursday 2 April.
The information contained in this document is classified as Members Only. Circulation is limited to Members Only. Any recipient of information in this category
may redistribute it to other persons within this access group whose access to this information is necessary to carry out or assist in connection with the relevant
business activity or operations. If distributed further, the original receiver maintains sole responsibility for ensuring the document is not distributed to unintended
recipients. If you are not the intended recipient of this document please do not distribute this information further and destroy all copies of this information
immediately. In addition, please notify the IAIS immediately: International Association of Insurance Supervisors, c/o Bank for International Settlements, CH-4002
Basel. Phone: +41 61 280 80 90; Fax: +41 61 280 91 51; Website: www.iaisweb.org; E-mail: iais@bis.org
EC 3.2 Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures
31 March 2020
Page 1 of 223
MEMBERS ONLY
Contents
1.
Operational and business continuity in the (re)insurance sector………………………………………………………………………………………………….. 3
2.
Insurance liabilities / insurance cover ……………………………………………………………………………………………………………………………………. 62
3.
Assets / investment portfolio ……………………………………………………………………………………………………………………………………………… 112
4.
Liquidity …………………………………………………………………………………………………………………………………………………………………………. 144
5.
Other relevant measures taken or planned in response to observed or potential impact(s) of COVID-19 on the insurance sector ……… 165
6.
Additional item on impact on IAIS Members: Operational and business continuity measures in place or planned at Authority level itself …
……………………………………………………………………………………………………………………………………………………………………………….. 190
7.
Optional item: Information on how the regulatory / supervisory regime in your jurisdiction caters for pandemic shocks …………………… 213
8.
Submissions in preparation ……………………………………………………………………………………………………………………………………………….. 223
EC 3.2 Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures
31 March 2020
Page 2 of 223
MEMBERS ONLY
Date
IAIS Member
Estimated impact on insurance sector
Regulatory, supervisory and other
financial policy measures being taken or
planned (description / link), where
applicable
Objective / motivation for
implemented / planned measure(s)
and Authority in charge of
measure(s)
1. Operational and business continuity in the (re)insurance sector
19 March
Reserve Bank of
New Zealand
At this stage not expected to be too
disruptive, but this may change. Insurers
have tested business continuity plans
(BCP) and some have already activated
it.
Monitoring with regular updates on BCP.
Supervisors are encouraging insurers with
identified BCP weaknesses to strengthen
them with some urgency.
No other actions taken or planned.
Some insurers are run out of Australia.
20 March
Ministry of
Economic Affairs
and Digital
Transformation
(Spain)
Re) insurers capacity to carry out
business currently not materially affected.
DGSFP is in close contact with the insurance
sector, holding regular dialogue to assess
operational and business continuity.
In addition to this, specific questionnaires
were sent to the industry.
No problems identified till now as regards
business continuity.
Ensure as far as possible normal
functioning of the sector.
Assess the situation on a continuous
basis.
Promote regular self-assessment and
awareness within the sector.
Insurers’ staff working remotely did not have
problems to deal with their commitments.
Insurance undertakings implemented their
contingency plans.
Companies set up crisis committees which
EC 3.2 Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures
31 March 2020
Page 3 of 223
MEMBERS ONLY
Date
IAIS Member
Estimated impact on insurance sector
Regulatory, supervisory and other
financial policy measures being taken or
planned (description / link), where
applicable
Objective / motivation for
implemented / planned measure(s)
and Authority in charge of
measure(s)
meet every day.
23 March
National Bank of
Belgium
(Belgium)
o
Unavailability staff due to disease
leading to disrupted processes and
difficulties carrying out business.
Disruption of outsourced services.
o
Working from home leading to
increased cyber risk
o
Business continuity measures
taken by BE insurers:
?
?
Review BCP of insurers in light of recent
developments of COVID-19 related risks (on
a continuous basis updates are requested
from insurers)
Encourage (re)insurers to take
necessary actions to be able to
continue doing business
Containment Procedures
(staff & visitors)

Travel ban to risk
zones

Quarantine for staff
returning from risk
zones

Staff Hygiene
Awareness Measures
Contingency Plans

Distance Working
EC 3.2 Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures
31 March 2020
Page 4 of 223
MEMBERS ONLY
Date
IAIS Member
Estimated impact on insurance sector
?
?

Avoid Physical
meetings

Relocation of Staff
across several Service
Centre Offices

Quarantine in case of
(direct or indirect)
contact with COVID19 (in case of own
sickness or in
neighborhood)
Regulatory, supervisory and other
financial policy measures being taken or
planned (description / link), where
applicable
Objective / motivation for
implemented / planned measure(s)
and Authority in charge of
measure(s)
Infrastructure response

Sourcing more laptops

Video conference
solutions
Internal Communication
Strategy
Prevention and Protection communication
to staff & visitors
23 March
Office of the
Supervisor of
Insurance and
Private Pensions
(Belize)
1. Underwriting of new business by
electronic means not possible as not
all companies have infrastructure to
conduct a non-face to face business
activity. Renewal of policies possible
and on-line banking for premium
payment possible.
1. Reviewing continuity plans of insurers
3. Enhancing security (of data) protocol for
“work from home” of highly vulnerable
supervisory staff.
2. Possible increase in claims will strain
4. Only electronic communication (including
2. Conducting stress testing for this
pandemic
EC 3.2 Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures
31 March 2020
1. Encourage life & health insurers to
prepare for the abnormal increase
claims
2. Encourage companies to improve
their crisis management plans
3. Encourage general companies to
consider joint preparation of
Page 5 of 223
MEMBERS ONLY
Date
IAIS Member
Estimated impact on insurance sector
operations due to small claims
departments
3. Increased security measures required
if persons are allowed to work from
home rather than from the office.
Some companies will be able to
operate remotely due to infrastructure,
others may not.
Regulatory, supervisory and other
financial policy measures being taken or
planned (description / link), where
applicable
statutory filings) at this time between
Supervisor and insurance sector with
understanding that all physical statutory
filings will be done at a later stage.
Objective / motivation for
implemented / planned measure(s)
and Authority in charge of
measure(s)
COVID 19 and the upcoming
hurricane season.
4. In event of a lock down – claims
processing (receipt and process) will
not be possible due to manual
infrastructure which may affect
medical attention at the private
hospitals
23 March
The Czech
National Bank
(Czech Republic)
The entities may face issues stemming
from the state wide restrictions.
Surveying all insurance companies and
gathering ad-hoc information.
There may be some implications due to
the restrictions in the walking outside
(causing majority of employees working
from home (e.g. cyber risks)), problems
with underwriting new business in life
(necessity of personal contract), possible
delays in claim settlement, etc.
Letters to the Czech Insurance Bureau and
to all CEOs of the insurance companies in
order to remind of the possible risks
stemming from current situation.
EC 3.2 Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures
31 March 2020
Understanding of the measures
taken by the entities and
reduction of the possible negative
impacts of the current and
forthcoming situation.
Page 6 of 223
MEMBERS ONLY
Regulatory, supervisory and other
financial policy measures being taken or
planned (description / link), where
applicable
Objective / motivation for
implemented / planned measure(s)
and Authority in charge of
measure(s)
Date
IAIS Member
Estimated impact on insurance sector
23 March
Insurance
Authority (China
Hong Kong)
The operations of insurers and
intermediaries can be disrupted if a
proportion of their staff get infected.
Insurers and insurance intermediaries
adopted work from home (WFH)
arrangements in late January to late
February, with the provision of customer
service either online or by skeleton staff.
Most insurers / insurance intermediaries
have resumed normal operation since
March, with split team arrangement
implemented and home quarantine
procedures in place.
To protect safety of staff and
customers while maintaining essential
insurance services to the public.
23 March
FMA
Liechtenstein
The inability for employees to go to their
designated workplaces could impact the
operational possibilities of an insurance
undertaking.
The FMA will get in touch with every
insurance undertaking to assess their
business continuity management for this
special situation
This should lead to a better picture on
whether the operational restrictions
can be mitigated by e.g. home office or
other measures. The FMA can also
help by giving hints on how operations
can be upheld in this special situation
23 March
NAIC (USA)
Most insurers and most other white-collar
businesses in the US are quickly moving
as many employees to telecommuting as
possible.
Many state regulators are issuing guidance
on or requiring the filing of updated Business
Continuity Plans to be filed with the domestic
regulator/lead state for the group. Ongoing
communication expected where deemed
appropriate.
Greater clarity on estimated impact on
operations.
For example:
https://www.floir.com/siteDocuments/OIR-2003M.pdf
EC 3.2 Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures
31 March 2020
Page 7 of 223
MEMBERS ONLY
Date
IAIS Member
Estimated impact on insurance sector
24 March
APRA (Australia)
?
All entities have activated their
BCP, with the majority now moving to
having their staff fully working at home.
?
Potential operational issues
especially with regard to operating
remotely in a heightened claims
environment.
?
Where insurers have offshored
processes, back up plans are required to
bring back onshore, especially if the
offshore site is closed due to local
quarantine laws.
24 March
ASIC (Australia)
?
Potential delays in handling of
claims and delivery of promises to
consumers.
?
Claim administration impacted by
closure of off-shore call and
administration centres (e.g. following
Manila ‘community quarantine’). Many
Australian insurers have offshore
operations including voice-related
functions.
?
Possible impacts of key conduct
risk controls / related functions such as
quality assurance and IDR/EDR functions
being designated as ‘non-core’ function in
Regulatory, supervisory and other
financial policy measures being taken or
planned (description / link), where
applicable
All insurance entities were contacted to
collect details on their response to the
ongoing coronavirus outbreak, for example to
understand pandemic /BCP plans. On top of
this, APRA is maintaining close contact with
its largest and more complex insurers to
ensure we are aware of how they are
managing, and the implications of, a rapidly
changing situation.
Objective / motivation for
implemented / planned measure(s)
and Authority in charge of
measure(s)
?
To ensure the regulated
entities are operationally ready and
prepared to address the escalating
and evolving risks from the COVID-19
pandemic.
?
To allow APRA to identify, and
target, those entities who do not have
credible pandemic plans in operation.
APRA has also requested any Board papers,
and associated action plans, relating to the
COVID19 outbreak; we are still undertaking
the analysis on these to identify outliers etc.
and on which entities APRA will need to
increase supervisory focus.
?
Monitoring impact of COVID-19 on
insurers and consumers by way of regular
stakeholder meetings, setting clear
expectations and analysing available data
including complaint data.
?
Public messages about expectations
and consumer advice
?
Co-ordinated regulatory response by
APRA, ASIC, RBA and Australian Treasury
(Council of Financial Regulators)
EC 3.2 Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures
31 March 2020
?
Ensure that claims are
handled fairly and in line with the
statutory and common law duty of
utmost good faith.
?
Ensure continued availability
of insurance to consumers (e.g. that
renewals are sent out).
?
Attempt to manage risk of
under and non-insurance.
Page 8 of 223
MEMBERS ONLY
Date
IAIS Member
Estimated impact on insurance sector
Regulatory, supervisory and other
financial policy measures being taken or
planned (description / link), where
applicable
Objective / motivation for
implemented / planned measure(s)
and Authority in charge of
measure(s)
The Authority has formed a cross-functional
working group in order to determine and
facilitate tactical and strategic regulatory
responses in light of the pandemic. As part of
the Authority’s supervisory framework in the
context of operational risk, registrants’
business continuity plans are evaluated.
The Bermuda Monetary Authority is the
only financial services regulatory within
Bermuda. The Authority has the chief
responsibility in oversight of registrants
implementing business continuity plans
in a prudent manner. The primary
motivation for an updated assessment
and monitoring of business continuity
plan execution is to ensure minimal
disruption by (re)insurers and the
financial
services
they
provide
especially as it pertains to policy holder
protection given the scale and
ramifications the Covid-19 pandemic
may present.
BCPs.
?
Ability to process renewals and
continue to offer insurance to consumers
– many insurers have an annual renewal,
i.e. 1 July, but spread evenly across the
year.
?
Premium payments – possible
need for payment holidays/spreading of
premiums over longer period to enable
consumers to keep premium payments up
to date.
24 March
Bermuda
Monetary
Authority
At this stage the ultimate operational
impact is uncertain. However, through
discussions with Industry Groups that
compose a material portion of the sector,
indications are that operational integrity will
be maintained. Our registrants have
executed their Business Continuity
Programs (BCP) and are working
remotely.
The Authority will seek to update this table
with further information as soon as
practicable.
Measures Taken to Date
Supervisory teams have revisited companies’
business continuity plans and exposure based
on regulatory submissions. From a risk based
perspective and on a sample basis the
Authority has engaged registrants through
prudential meetings and other mechanisms.
This is in order to ascertain the operational
EC 3.2 Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures
31 March 2020
Under the Insurance Code of Conduct
registrants are expected to assess
Page 9 of 223
MEMBERS ONLY
Date
IAIS Member
Estimated impact on insurance sector
Regulatory, supervisory and other
financial policy measures being taken or
planned (description / link), where
applicable
Objective / motivation for
implemented / planned measure(s)
and Authority in charge of
measure(s)
aspects and business continuity plans with an
aim of ensuring that there is minimal business
disruption to policy holders and other relevant
stakeholders and that required solvency and
liquidity ratios are projected to be maintained
in light of the Covid-19 pandemic and the
resultant impact on the global economy and
financial markets. Specific areas that have
been discussed regarding business continuity
are:
operational risk as part of their risk
management
framework
which
includes risk with regards to business
continuity. As part of supervision the
Authority takes this into account in
assessing whether and insurer is
operating in a prudent manner.
•
Business Continuity: Areas that the
supervisory teams have covered
include current and planned office
closures, IT systems and operations
capability. Performance monitoring of
staff working remotely and third
service providers.
•
Succession Planning
•
Areas discussed on the areas of
Economic/Capital Impact, Liquidity
Planning,
Underwriting
Considerations are expanded upon in
the sections below.
The Authority has allowed one month filling
extension for the submission of the year-end
regulatory filling as well as allowing for
EC 3.2 Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures
31 March 2020
Page 10 of 223
MEMBERS ONLY
Date
IAIS Member
Estimated impact on insurance sector
Regulatory, supervisory and other
financial policy measures being taken or
planned (description / link), where
applicable
Objective / motivation for
implemented / planned measure(s)
and Authority in charge of
measure(s)
regulatory forbearance in duly justified cases.
The other measures taken by the
Authority aim at reducing the burden on
the insurance market on non-essential
regulatory matters so to allow the
insurance market to effectively manage
this pandemic event.
Planned Measures
The Authority is in the process of issuing a
data call (survey) to the Bermuda
(re)insurance sector.
The data call includes a section on
governance surrounding business interruption
of registrants. Formal documented strategies
to deal with the impact of Covid-19 and
ramifications are requested to be submitted to
the Authority.
The survey is meant to gather statistical
information in order to gauge the
(re)insurance sector’s exposure to
Covid-19 and planned actions. This is
to assist the Authority further
understanding the landscape and to
determine the institution of policy
measures.
In advance of issuing the data call the
Authority has engaged re(insurance) sector
industry groups to receive an indication in
general of how members are managing
headwinds of the Covid-19 Pandemic.
The Covid-19 Pandemic as it pertains to our
registrants has now been elevated to being a
central area of evaluation in our supervisory
framework. It is to be assessed as part of
planned prudential meetings an On-sites for
EC 3.2 Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures
31 March 2020
Page 11 of 223
MEMBERS ONLY
Date
IAIS Member
Estimated impact on insurance sector
Regulatory, supervisory and other
financial policy measures being taken or
planned (description / link), where
applicable
Objective / motivation for
implemented / planned measure(s)
and Authority in charge of
measure(s)
2020.
Supervisory work plans are also being revised
to reduce burden on non-critical matters, this
includes postponement of non-critical onsite
inspections.
More widely and beyond the remit of the
Authority, Bermuda’s Ministry of Finance has
announced a package of emergency
measures that include financial assistance to
those individual facing employment income
disruption, fiscal support for business facing
financial pressures, deadline and conditions
relaxations in tax and banking matters for
individuals and business. Specific
discussions have been had by the Ministry of
Finance with Bermuda banking sector and
extraordinary lines of credits have been
agreed, among other.
EC 3.2 Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures
31 March 2020
In line with other jurisdictions,
measures by Bermuda’s Ministry of
Finance can be understood as part of
fiscal stimuli put in place with the goal
of dampening the negative financial and
economic effects of the activity
downturn triggered by the freeze in
circulation of people and goods, and in
the provision of services as a
consequence of sanitary measures
taken to contain the spread of Covid-19
Page 12 of 223
MEMBERS ONLY
Date
IAIS Member
24 March
Office of the
Superintendent of
Financial
Institutions
(Canada)
Estimated impact on insurance sector
Most insurance companies have enacted
the portions of their business continuity
plans (BCPs) that are relevant to the
current pandemic scenario.
The extent of insurance companies’
vulnerabilities is highly dependent on the
ability to maintain critical business
operations and exposure to impacted
geographic areas and/or industries.
COVID-19 continues to expand to core
areas of operations in Canada and the
U.S. where there is uncertainty around the
extent of infection.
Business operations could be impacted
due
to
customer
and
staff
quarantines. Insurance companies remain
vulnerable to investment losses in sectors
impacted by COVID-19, higher claims and
higher operating expenses
Regulatory, supervisory and other
financial policy measures being taken or
planned (description / link), where
applicable
Objective / motivation for
implemented / planned measure(s)
and Authority in charge of
measure(s)
In late January, OSFI established a
Coronavirus (COVID-19) Working Group. At
this time, there are frequent meetings across
all sectors focusing on supervisory and
regulatory implications.
To determine if there are current or
potential supervisory/regulatory issues
that warrant attention in relation to
COVID-19.
The focus for smaller financial institutions is
on business continuity plans and employee
communications. For medium and largesized institutions, the working group is
gathering more detailed information on
pandemic stress testing plans and
maintaining regular contact.
Common measures taken across the larger
insurance companies include the following:
•
Identification of Critical employees.
•
Reviewing BCPs especially for pandemic
preparedness, including testing
alternative employee work arrangements
(particularly key employees), and testing
of call trees.
•
Ongoing communications to staff about
preventative measures including: :
Promoting hygiene (e.g. Hand Sanitizers)
and requiring staff returning from high
risk areas to work remotely and unwell
staff to stay at home.
•
Establishing committed teams to coordinate all COVID-19 related efforts.
EC 3.2 Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures
31 March 2020
Page 13 of 223
MEMBERS ONLY
Date
IAIS Member
Estimated impact on insurance sector
Regulatory, supervisory and other
financial policy measures being taken or
planned (description / link), where
applicable
Large life insurers are engaged in frequent
discussions with OSFI lead supervisory
teams. Moreover, all other insurers have
been contacted by OSFI. At this times,
insurers, have indicated they have
confidence in being able to maintain
essential operations while working from
home.
Objective / motivation for
implemented / planned measure(s)
and Authority in charge of
measure(s)
Actions were taken to allow insurers to
focus on the current operational
issues.
In view of the current developments, OSFI
has suspended all of its consultations and
policy development on new or revised
guidance until conditions stabilize. Also,
recognizing that some insurers may
encounter difficulties in meeting deadlines for
certain near term regulatory filings, OSFI is
prepared to offer flexibility with upcoming
filings. Flexibility is being granted on a caseby-case basis.
OSFI has also connected with insurers to
understand actions they have taken in light of
the current environment (e.g. actions taken to
address associated risks, internal
communications, implementation of Business
Continuity Plan response).
EC 3.2 Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures
31 March 2020
Page 14 of 223
MEMBERS ONLY
Date
IAIS Member
24 March
Financial
Supervisory
Commission
(Chinese Taipei)
24 March
ACPR (France)
Estimated impact on insurance sector
Regulatory, supervisory and other
financial policy measures being taken or
planned (description / link), where
applicable
Objective / motivation for
implemented / planned measure(s)
and Authority in charge of
measure(s)
All of our insurers have established related
contingency mechanisms such as remote
working
and
Business
Continuity
Management (BCM). As of March 24, all of
the insurers have already started working
offsite or working from home to reduce
contagion risk and ensure continued
operations.
1.
To ensure the business continuity of all
the insurers, the FSC has required our
insurers to start the precautionary
measures for epidemic of COVID-19.
1. To avoid cross infection within the
company and cause operation
interruption.
2.
The FSC requires all of the insurers’
general managers to oversee the
precautionary measure within their
companies. The FSC also urged
insurers to prohibit their staffs from
unnecessary overseas travel. In
addition, insurers have to report to
the FSC immediately when their
staffs need to be quarantined.
4.
To avoid hackers attacking the
loopholes of information systems
arising from the arrangements of
remote working.
5.
3.
The FSC has required our insurers
to strengthen their information
security management mechanisms
especially during this period.
• Operational
risk:
crisis
management plans have been
activated by every insurer.
Teleworking is now in place
everywhere except for some
critical functions.
The FSC requires all of the
insurers’ general managers to
oversee the precautionary
measure within their companies.
The FSC also urged insurers to
prohibit their staffs from
unnecessary overseas travel. In
addition, insurers have to report
to the FSC immediately when
their staffs need to be
quarantined.
2. The FSC has required our insurers
to strengthen their information
security management mechanisms
especially during this period.
Supervision is being conducted as far as
possible off-site: all meetings with
insurance undertakings are made by
teleconferences; no additional on-site
inspection but those that already began are
conducted as far as possible off-site
EC 3.2 Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures
31 March 2020
Page 15 of 223
MEMBERS ONLY
Date
IAIS Member
24 March
Central Bank of
Iceland
Estimated impact on insurance sector
Regulatory, supervisory and other
financial policy measures being taken or
planned (description / link), where
applicable
• Operational risk, including cyber,
key-person risk, dependence on
remote technical tools and
exposure to human errors.
Ad-hoc monitoring by ACPR
Icelandic undertakings are generally in a
good position regarding operational and
business continuity plans. All firms have
performed an operational risk assessment
to maintain core services in light of
events.
Information request sent on the 6th of March
– see answer to question 6.
Objective / motivation for
implemented / planned measure(s)
and Authority in charge of
measure(s)
Information gathering for supervisory
purposes and to analyse what actions
undertaking had taken to minimize
operational disruption
In addition, undertakings have been
offered relief, if needed, from supervisory
reporting and public disclosure at
European level.
Significant issues are not foreseen but, as
should be expected, the level and speed
of service might decline.
Significant steps have been taken in
recent times by undertakings to
increase the service level provided
through digital channels. The steps
taken so far have significantly
reduced the need for policyholders to
have a physical interaction with
undertakings
24 March
Central Bank of
Ireland
Responses of survey did not highlight
significant “red flags” although responses
from certain firms indicated potential
Operational resilience survey sent to initial
sample of 31 insurance firms, including all
higher impact insurance undertakings. The
EC 3.2 Compiled Results of the IAIS Survey on COVID-19 related policy and supervisory measures
31 March 2020
Information gathering exercise to
understand where there may be
significant gaps in firms’ preparedness
Page 16 of 223
MEMBERS ONLY
Date
IAIS Member
Estimated impact on insurance sector
vulnerabilities. Initial survey responses
indicated that:
•
Most of the firms had set in
motion or have planned protocols
in place as a response to COVID19, within these protocols there
are specific steps that the firm
intends to take to address the
risk.
•
All except 3 out of 31 firms (9%)
consider pandemic scenario
under their BCP, however, all of
them are taking this opportunity to
review and update it in the
context of COVID-19.
•
In few cases, firms indicated that
there was some potential impacts
and a level of uncertainty which
would be addressed