The Financial Stability Board (FSB) is seeking public comment on proposed guidance “for the identification of the critical functions and critical shared services for systemically important insurers.”

Once in place, the draft guidance is designed to put crisis planning in action for insurers deemed so important that their failure could harm the global economy, Bloomberg reported. The guidance would help identify functions and services that need to continue in order to protect policyholders and maintain stability of the financial system.

Comments and responses to the draft guidance are welcome until Dec. 15, 2014. The FSB wants responses to be sent to, and they’ll be published on the FSB web site unless commenters specifically request for that not to happen.

The FSB, a mix of regulators and central bankers from the Group of 20 nations, was established in the wake of the 2008 financial crisis. Among its tasks is to rank banks and insurers by how likely they could cause a global financial meltdown if they collapse.

With that in mind, the FSB is designed to facilitate international coordination of national financial bodies and international regulatory agencies to develop and promote “effective regulatory, supervisory and other financial sector policies in the interest of financial stability.” U.S. state and federal regulators have participated in international discussions, but they have also stated they will ensure that U.S. regulatory standards won’t be undercut beneath a bid for international uniformity. At the same time, however, they have said they’ll push for consensus.

Source: FSB

Topics Carriers Legislation