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Purpose (partial) "1. The purpose of this document is to describe Basic Capital Requirements (BCR) for Global Systemically Important Insurers (G-SIIs). The BCR will be privately reported by GSIIs to group-wide supervisors from 2015. 2. The development of the BCR is the first step of the International Association of Insurance Supervisors’ (IAIS) project to develop group-wide global capital standards. The second step is the development of Higher Loss Absorbency (HLA) requirements to apply to GSIIs, due to be completed by the end of 2015. The HLA will build on the BCR and address additional capital requirements for G-SIIs reflecting their systemic importance in the international financial system. The third step is the development of a risk based group-wide global Insurance Capital Standard (ICS), due to be completed by the end of 2016, and to be applied to Internationally Active Insurance Groups (IAIGs) from 2019 after refinement and final calibration in 2017 and 2018. The development of the ICS will be informed by the work on the BCR. 3. The BCR is the comparable foundation for HLA, and together they will provide a consolidated group-wide capital requirement that will apply to G-SIIs only. When finalised, the ICS will replace the BCR in its role as the foundation for HLA. In the longer term, the key principle is that G-SIIs should be required by their group-wide supervisors to hold higher levels of regulatory capital than would be the case if they were not designated as G-SIIs. 4. The initial BCR calibration level has been determined, after analysis of information collected from field testing volunteers. Because of the interlinkage of BCR and HLA, the calibration may be modified depending on the HLA requirements. From 2019, G-SIIs will be required to hold capital no lower than the BCR plus HLA. 5. From 2019, HLA will commence to apply to G-SIIs – HLA will initially be based on BCR as a foundation, but later will be based on ICS as a foundation. The exact timing of the transition of the foundation from BCR to ICS will depend upon the adoption date of the ICS by the IAIS and upon the time required for jurisdictions to develop and implement the necessary frameworks for implementation of the ICS. The scheduled ICS adoption date is October 2018. Calibration of HLA may need to be revised once the ICS has been adopted."

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