Page 35 - Annual Report 2019

32 ANNUAL REPORT 2019 SUPERVISION AND AUTHORISATION

International Association of Authorisation Macroprudential Analysis
Insurance Supervisors The Authorisation department is responsible for assessing In 2019, under the Regulatory Authority’s risk-based
As a member of the International Association of Insurance and approving applications from firms and individuals supervision framework, the Macroprudential Analysis
Supervisors (IAIS), the Regulatory Authority participated seeking authorisation from the Regulatory Authority department provided insights on macroeconomic and
in its work through the completion of peer review surveys to conduct regulated activities in or from the QFC. The finance stability to microprudential supervisory staff, senior
for Insurance Core Principles (ICPs) and by attending the department also acts as the interface between applicants management, and the Board of Directors. Macroprudential
IAIS annual conference and sub-committee meetings and the Companies Registration Office of the QFC Authority surveillance operates alongside microprudential (entity-
in 2019. This participation was part of the Regulatory in respect of their registration or incorporation in the QFC. level) surveillance to assist supervisors in their efforts
Authority’s continuous efforts to benchmark itself against During 2019, Authorisation met with a broad range of to prevent or mitigate effects of the risks identified.
international standards, as well as to monitor international prospective applicants to discuss their proposals and Macroprudential surveillance assisted
supervisory good practices and emerging risks. subsequently review their submitted regulatory business the Regulatory Authority in:
plans. When a plan is deemed viable and approved to
Risk assessment visits proceed, Authorisation includes the proposed supervisor as • identifying and assessing important changes
an active participant in the assessment to ensure all issues in the financial sector (i.e. banking, insurance,
Although Insurance Supervision focused primarily are understood and managed appropriately once the firm and investment management), as well as
on examining specific risk topics during 2019 across is authorised and subsequently transferred to supervision. macroeconomic factors affecting these markets;
the insurance sector, the department also conducted • delivering value-added quantitative and qualitative
risk assessment visits and proactive supervisory Details of authorised firms are set out in Annex 1. During information for forward-looking monitoring; and
engagement meetings with authorised firms, and held the year, one bank and two investment management • detecting macro-financial issues that may affect
discussions with external auditors and actuaries. firms were authorised. The number of individuals approved the Regulatory Authority’s authorised firms.
Increased focus on thematic reviews combined with by the Regulatory Authority to perform controlled functions
formal supervisory engagements, desk-based analysis in authorised firms was 349. Please see Annex 2.
of regulatory returns and risk assessment visits enabled
the Regulatory Authority to use its resources more
efficiently and consistently to review material risk areas
and to achieve required supervisory outcomes.
Insurance charts
A selection of graphs on pages 56 – 63 highlights trends
and facts relevant to the Regulatory Authority’s authorised
insurance firms. These graphs use certain data obtained
through reviews of the quarterly prudential returns
submitted by insurance firms using the Regulatory
Authority’s XBRL-based Electronic Submission System.