IAIS Seeks Feedback on Insurance Industry Operational Resilience Paper

The International Association of Insurance Supervisors (IAIS) is seeking feedback on an issues paper focusing on operational resilience in the insurance sector.

The IAIS noted that operational resilience has become an increasingly important area of focus, particularly due to rapidly evolving technology and innovation, changes to where and how people are working, and increasing cyber threats.

"While the concept of operational resilience may not be new to insurers, there is a recognition of the importance to adapt supervisory regimes to account for the growing resilience of insurers on digital systems, the adoption and implementation of new technologies, and the potential for insurance firms to rely on third-party providers to assist in implementation and support," an IAIS statement said.

In response to the trends underscoring the importance of resilience, the IAIS' Operating Resilience Task Force (ORTF) has published for consultation an "Issues Paper on Insurance Sector Operational Resilience." The paper identifies issues affecting operational resilience in the insurance industry and offers examples of how supervisors are approaching them, with consideration of lessons learned from the COVID-19 pandemic.

While recognizing that operational resilience is a broad and evolving area, the paper address three specific subtopics: cyber resilience, third-party outsourcing, and business continuity management.

The IAIS invites feedback on the paper to be submitted by January 6. More information, a draft of the issues paper, and a link to the consultation tool used to provide feedback are available on the IAIS website.