Public consultation on the draft Application Paper on Operational Resilience Objectives [and Toolkit]
Comments due by 11 October 24:00 CEST
Background information
Operational Resilience is a key strategic theme for the IAIS and is a topic that has relevance across regions and jurisdictions, with many authorities and insurers facing the same or similar challenges. The IAIS’ work in this area is ongoing. In 2016 and 2018 respectively, the IAIS published an Issues Paper and Application Paper examining fundamental aspects of cyber security for financial institutions. In 2023, the IAIS published an Issues Paper that identified issues impacting on operational resilience in the insurance sector with respect to cyber resilience, IT third-party outsourcing and business continuity management, and provided examples of how insurance supervisors are approaching these issues.
The IAIS has now developed Operational Resilience Objectives for the insurance sector, with the aim of providing a sound and consistent foundation to support supervisory authorities in developing and strengthening their approaches to supervising insurers’ operational resilience. These Objectives are outcomes-based, do not set out new requirements, and rather provide clarity on the application of existing supervisory materials. These Objectives have been developed in the context of the insurance sector being a complex, interconnected, cross border system in which insurers are continuing to embrace digital innovation, rely on third-party services to support their critical operations, and are increasingly subject to operational risks that may be systemic in nature. Accordingly, the Objectives address:
- the relationship amongst operational resilience, governance and operational risk management
- key elements of a sound approach to operational resilience that encourage the effective and holistic management of insurers’ people and processes
- Objectives for insurance supervisors.
The Objectives represent the first phase of a two-part consultation. The second phase, to develop a draft Toolkit is underway and will set out supervisory practices relevant to the Objectives. Following public consultation on the draft Toolkit in the first half of 2025, the two phases of this work will be integrated into a single Application Paper.
A public background session will be held via webinar on 10 September 2024 from 14:00-15:00 CEST. Please click here for more details.
Feedback on the document is invited by Friday 11 October 24:00 CEST. All consultation questions are optional, so you may comment on all or a subset of questions. To ensure your feedback is adequately captured, please provide responses to the questions directly in the survey tool. Following this deadline, the consultation tool will close, and it will no longer be possible to submit comments.
How to provide feedback:
The consultation is now open. Please use the consultation tool to provide your comments. Instructions for use are available within the tool. Only comments submitted through the tool will be considered. All comments will be published on the IAIS website unless the option in the tool that comments remain confidential is chosen.