Systemic Risk from Insurance Product Features (previously referred to as Non-traditional Noninsurance activities and products)

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Since its introduction, the Non-traditional concept (introduced by the 2013 global systemically important insurer (G-SII) Policy Measures document) and the Non-traditional Noninsurance (NTNI) label itself have led to some confusion.

The IAIS decided to discontinue the NTNI product label and to focus on substantial liquidity risk and macroeconomic exposure and their related systemic risk transmission channels. This document describes the rationale for the IAIS’ discontinuation of the NTNI product label and its replacement with a more granular and nuanced assessment of product features.

As a consequence, the first two NTNI principles in the 2013 IAIS G-SII Policy Measures document will no longer be used, having been superseded by the more detailed assessment set out in this document.