- The DGSFP has classified MAPFRE as the only Group in Spain meeting size and globalization requirements
The DGSFP (Dirección General de Seguros y Fondos de Pensiones — General Directorate for Insurance and Pension Funds) has classified MAPFRE as the only internationally active insurance group (IAIG) in Spain to apply the common framework for the supervision of international insurance groups.
On November 14, 2019, the International Association of Insurance Supervisors (IAIS) approved a package of reforms on prudential insurance supervision; the goal was to harmonize and improve the effectiveness of supervision of international insurance groups and contribute to global financial stability.
The reform package includes both the common framework (ComFrame), which establishes standards and supervisory requirements applicable to large IAIGs, and the Holistic Framework, which incorporates measures aimed at mitigating systemic risk in the insurance industry.
To promote greater transparency around the groups coming under these frameworks, authorities tasked with insurance supervision have agreed to publish a list of the IAIGs they’ve designated in their jurisdictions.
To provide a globally comparable measure of capital adequacy for internationally active groups, insurance supervisors have pushed the IAIS to develop a risk-based insurance capital standard (ICS) to be included in the international supervisory standard.
A five-year monitoring period, during which ICS Version 2.0 will be used for confidential reporting to group-wide supervisors (DGSFP in our case) began in the last quarter of 2019.
It’s worth mentioning that the ICS is currently under development and for this reason won’t be used as a group-wide capital requirement during the upcoming five-year monitoring period. However, once this period is over, the ICS is expected to be implemented as another capital requirement on top of Solvency II, making it possible to compare insurance groups in both European and international capital markets.
MAPFRE shares the designation in Europe with Aegon, Ageas, Allianz, Generali, HDI, Munich Re, NN Group, and Vienna Insurance Group.