Publication of Guidance on transitioning to a risk-based solvency (RBS) regime

The IAIS today published guidance for supervisors on the practical aspects of implementing an RBS regime. This document, which was developed by the Risk-based Solvency Implementation Forum in cooperation with the International Monetary Fund (IMF), provides insights into the journey towards RBS taken by several IAIS member and provides guidance on key considerations in the design of an RBS regime and the process of implementing such a regime.

The Guidance:

• Highlights that implementing an RBS regime is not a short-term undertaking but rather a medium- to long term project;
• Explains that an RBS project can be constructed in different ways depending on the nature of the jurisdiction’s legal system, the resources available to the supervisor and the preferences of the supervisor and industry stakeholders;
• Provides an overview of the key elements of a project plan, including the important role of stakeholder engagement throughout the transition process; and
• Underscores that the implementation of an RBS regime involves cultural change for both the insurance sector and the supervisor, both of which require careful management.

The IAIS will host a public webinar on Thursday, 26 June 2025 13:00-14:00 CEST to present the Guidance and answer audience questions. Click here to register.

The Guidance is available here.