The Insurance Capital Standard (ICS) is being developed as a consolidated group-wide capital standard for IAIGs. It consists of three components: valuation, qualifying capital resources, and a standard method for the ICS capital requirement. The ICS will be the quantitative component of ComFrame.
The purpose of the ICS is to create a common language for supervisory discussions of group solvency to enhance global convergence among group capital standards. ICS Version 2.0 for the monitoring period was agreed by the IAIS Executive Committee in November 2019. The five-year monitoring period is for confidential reporting and discussion in supervisory colleges from the beginning of 2020. During the monitoring period, ICS results will not be used as a basis for triggering supervisory action. Following the end of the monitoring period, the ICS will be implemented as a group-wide prescribed capital requirement.
The documents supporting ICS confidential reporting during the monitoring period can be accessed here.