The International Association of Insurance Supervisors (IAIS) has published a set of high-level principles (HLPs) to support the global implementation of the Insurance Capital Standard (ICS), marking a significant step in establishing consistent solvency rules for internationally active insurance groups (IAIGs).
Adopted in December 2024, the ICS is designed to provide a risk-based, comparable measure of capital adequacy across jurisdictions. It serves as a key component of the Common Framework for the Supervision of IAIGs (ComFrame) and acts as a group-wide prescribed capital requirement. The standard sets a solvency control level at which regulatory intervention is expected if an insurer’s capital position falls short.
The newly released HLPs are intended to guide the development of the ICS Implementation Assessment Methodology, which will form the basis for IAIS-led jurisdictional assessments starting in 2027. The principles will also support the creation of a self-assessment questionnaire that jurisdictions are expected to complete in 2026 to measure their preparedness and progress.
In a statement, the IAIS described the HLPs as a “critical bridge between adoption and implementation,” noting that they provide a structured yet flexible foundation to ensure consistent application of the ICS while allowing room for jurisdictional differences.
“The HLPs reflect our commitment to a transparent and globally aligned approach to insurance supervision,” the IAIS said.
The release of the principles comes at a time when the global insurance sector is under increased pressure to demonstrate financial resilience amid growing systemic risks, including climate-related events and market volatility. By laying out a clear path toward implementation, the IAIS is aiming to enhance regulatory coordination and promote stability across borders.
The ICS has long been viewed as a cornerstone of international insurance regulation, offering a harmonized framework that balances risk sensitivity with comparability. The latest publication signals that global supervisors are preparing to shift from design to enforcement, with a focus on building stronger, more resilient insurance groups worldwide.
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