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Preface "This document describes the first version of the Higher Loss Absorbency (HLA) requirement for Global Systemically Important Insurers (G-SIIs). The HLA builds on the Basic Capital Requirements (BCR) and addresses additional capital requirements for GSIIs reflecting their systemic importance in the international financial system. The current foundation for the HLA is the BCR, which the IAIS intends to replace with the Insurance Capital Standard (ICS) as that foundation when the ICS is developed. As the ICS is developed, the design and calibration of the HLA will be reviewed. Additionally, certain aspects of the HLA relate to requirements applicable to other regulated financial sectors (e.g. banking, asset management) for which capital rules already exist or are under development. The IAIS will continue to ensure consistency with such other requirements so as to minimise opportunities for regulatory arbitrage."

Additional Nematrian Commentary This document is part of a wider workstream that includes developing (global) Basic Capital Requirements (BCR) and an Insurance Capital Standard (initially applicable to Global Systemically Important Insurers (G-SIIs).

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