The adoption of the Insurance Capital Standard (ICS) by IAIS establishes a new global framework for capital adequacy, providing a risk-sensitive approach to enhance financial stability for Internationally Active Insurance Groups (IAIGs).
How infraMetrics and privateMetrics Support ICS Compliance:
- Market-Aligned Valuation:
These platforms provide timely, market-driven data that meets ICS’s Market-Adjusted Valuation (MAV) requirements, ensuring accurate and consistent reporting.
- Tailored Risk Assessment:
Custom benchmarks and granular metrics enable insurers to align portfolio-specific strategies with ICS standards, optimising risk charges
- Internal Model Support:
Robust data and insights help insurers to develop ICS-compliant internal models, reflecting portfolio-specific risks more accurately than the standard formula.
- Optimising Capital Requirements:
Infrastructure Equity: The infra300 index, central to ICS standard calibration, lowers risk charges to 27% for developed markets and 37% for emerging markets. Tailored benchmarks from infraMetrics further enhance portfolio risk assessment.
Infrastructure Debt: infraMetrics data enables better risk estimation, potentially reducing stress factors by up to 73% and lowering capital requirements.
Private Equity: privateMetrics supports tailored risk assessments and internal models, helping insurers calculate Value-at-Risk and reduce risk charges below the standard 49%.
ICS adoption presents both challenges and opportunities. infraMetrics and privateMetrics offer the tools and data-driven insights to help insurers not only meet compliance standards but also enhance their risk management and investment strategies.
Explore the report and discover how infraMetrics and privateMetrics can simplify your path to ICS compliance. For further details or personalised assistance, please contact us.
To find out more:
🔗 privateMetrics Index Factsheet
🔗 infraMetrics Index Factsheet
🔗 privateMetrics Asset Valuation Methodology
🔗 infraMetrics Asset Valuation Methodology
🔗 Report: Global Adoption of the Insurance Capital Standard (ICS)
