Following the 2007-2008 global financial crisis, the G20 launched a comprehensive programme of financial reforms to increase the resilience of the global financial system. The IAIS has contributed to these post-crisis reforms including by participating in a global initiative to address systemic risk in the financial sector, under the purview of the Financial Stability Board (FSB) and G20. Part of this initiative is the identification of, and setting supervisory policy measures for, global systemically important financial institutions (G-SIFIs): institutions whose distress or disorderly failure would cause significant disruption to the global financial system and economic activity. In 2013, the IAIS adopted an assessment methodology to support recommendations on the identification of global systemically important insurers (G-SIIs) and policy measures to apply to these institutions (“G-SII policy measures”).
In light of the finalised Holistic Framework, the FSB, in consultation with the IAIS and national authorities, decided to suspend G-SII identification as from the beginning of 2020.
In December 2022, the FSB decided to discontinue the G-SII identification, based on the initial years of implementation of the Holistic Framework, endorsing the Holistic Framework as an improved basis for its consideration of systemic risk in insurance (see press release).