IAIS publishes updated Global Monitoring Exercise (GME) document

The IAIS has published the updated Global Monitoring Exercise (GME) document, which outlines the objectives and process of the GME. The changes resulted from the three-year review cycle and were consulted upon December 2022 – February 2023.

The changes focus on an updated methodology to calculate individual insurers’ systemic risk footprint in the individual insurer monitoring (IIM).

In summary, key changes made include:

• Updating of the insurer pool selection criteria;
• Removal of the financial guarantees indicator;
• IIM indicator reweighting;
• Updating currency exchange rates used in the calculation of IIM systemic risk scores; and
• Fixing the rescaling factor between the liability liquidity and short-term funding indicators.

Areas of ongoing work focus on enhancing the monitoring of the level 3 assets and the development of ancillary indicators on reinsurance, derivatives and credit risk.

The detailed resolution of comments received is also published.

To read the final document and the resolution of comments, visit the consultation page.