Significantly Important Insurers Global List 2016

Significantly Insurance Institutions

Significantly Important Insurers Global List 2016

The G-SII

On November 3, 2015, the Financial Stability Board (FSB) issued the updated list of the Global Systemically Important Insurers Global List for 2016 (G-SII): Dutch insurer, Aegon NV, has been added to the list, while Generali has been deleted.

In 2013, the FSB identified an initial set of nine G-SIIs in 2013. In 2013, the FSB, in consultation with IAIS and national authorities, identified an initial list of nine G-SIIs, using an assessment methodology developed by the IAIS.

The FSB will review the list annually using updated information and add or delete institutions as indicated by results of the assessment.

Starting from November 2014, insurers can be added and removed from the list according to the publicly available assessment methodology and based on the latest available data. Publication of the methodology ensures that firms are aware of the factors driving the assessment of systemic importance.

For 2015, after consideration of the IAIS’s annual G-SII assessment exercise and following consultation with the IAIS and national authorities, the FSB has identified nine primary insurers as G-SIIs, using end-2014 data and the methodology published by the IAIS in July 2013.

The FSB has reviewed the list each November since 2011. The G-SIIs for 2016 are:

  • Aegon N.V.
  • Allianz SE
  • American International Group, Inc.
  • Aviva plc
  • Axa S.A.
  • MetLife, Inc.
  • Ping An Insurance (Group) Company of China, Ltd.
  • Prudential Financial, Inc.
  • Prudential plc.

Upon designation as a G-SII, the requirement deadlines for completion of the following tasks are as follows (using start date of November 2015):

Establishment of Crisis Management Group (CMG)
Requirement Deadline = 6 months (May 2016)

Development of recovery plan
Requirement Deadline = 12 months (November 2016)

Systemic Risk Management Plan
Requirement Deadline = 12 months (November 2016)

Liquidity Management and Planning
Requirement Deadline = 12 months (November 2016)

Development of resolution plan (using resolution strategy/review within CMG
Requirement Deadline = 18 months (May 2017)

Agreement of institution-specific cross-border cooperation agreement
Requirement Deadline = 18 months (May 2017)

Conduct of resolvability assessment within the CMG
Requirement Deadline = 24 months (November 2017)

If you need some background, read the difference between insurance companies and banks and my article on SIFI Designation. You can also review is the FSB’s 2016 List of Global Significantly Important Institutions (G-SII).

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