Public Consultation on Issues Paper on Insurance Sector Operational Resilience
Operational resilience has become an increasingly important area of focus, particularly in light of rapidly evolving technology and innovation, changes to where and how people are working, and an increasing cyber threat landscape. While the concept of operational resilience may not be new to insurers, there is a recognition of the importance to adapt supervisory regimes to account for the growing resilience of insurers on digital systems, the adoption and implementation of new technologies, and the potential for insurance firms to rely on third party providers to assist in implementation and support.
In response to these emerging trends, the IAIS’ Operational Resilience Task Force (ORTF) has now published for consultation its Issues Paper on Insurance Sector Operational Resilience. The paper identifies issues impacting operational resilience in the insurance sector and provides examples of how supervisors are approaching these developments, with consideration of lessons learnt during the Covid-19 pandemic.
Recognising that operational resilience is a broad and evolving area, the paper addresses three specific operational resilience sub-topics concerning areas the ORTF considers as matters of significant and increasing operational risk and, therefore, of immediate interest to supervisors:
- Cyber resilience
- Third-party outsourcing
- Business Continuity Management.
On 13 January 2023, the public consultation on the Issues Paper on Insurance Sector Operational Resilience closed. The IAIS is in the process of reviewing the comments received. All consultation questions were optional, allowing stakeholders to comment on all or a subset of questions. The consultation tool is now closed, and it is no longer possible to submit comments.
A public background session was held via webinar on 27 October 2022. A recording session can be found here.