These challenges and the protracted process they have occasioned have, as a practical matter, rendered the ICS insufficiently developed to be an option as the Federal Reserve moves forward with capital requirements applicable to the insurance companies we supervise. A second relevant initiative of the IAIS involves the design of an enhanced regulatory and supervisory framework for global systemically important insurers (G-SIIs).
In 2014, the IAIS released the Basic Capital Requirement (BCR) for G-SIIs. It is the first international consolidated capital standard developed for the insurance industry. The IAIS developed the BCR in an effort to ensure the soundness of global insurance firms with the largest systemic footprints. In 2015, the IAIS supplemented the BCR with a Higher Loss Absorbency (HLA) capital standard for G-SIIs.