The International Association of Insurance Supervisors has issued a technical note clarifying how credit ratings map to the Insurance Capital Standard’s seven rating categories. The existing mapping for seven named credit rating agencies remains unchanged, while ratings from other agencies may be recognized through Basel External Credit Assessment Institution mappings or a principles-based assessment of the agency and its default and transition data. For other agencies, the standard generally limits mappings to Insurance Capital Standard Rating Categories 2-7 and applies a one- or two-notch downward adjustment because their data may be less complete. At the jurisdictional level, this adjustment may be removed for a specific agency if its data are assessed as sufficiently credible and comprehensive. The note also confirms that the association does not monitor the mappings on an ongoing basis and its approval is not required to recognize other agencies or assign rating categories. Future versions of the standard could remove wording that implies an association approval role and reconsider whether evidence-based conditions should allow other agencies’ ratings to map to Rating Category 1.
2026-06-23International Association of Insurance Supervisors
International Association of Insurance Supervisors clarifies credit rating agency mapping under the Insurance Capital Standard
The International Association of Insurance Supervisors clarified how credit ratings map to the Insurance Capital Standard, including the routes for recognizing agencies beyond the seven already listed. Jurisdictions may waive the usual downward mapping adjustment where an agency’s data are sufficiently credible and comprehensive, without association approval. Future revisions could address mapping other agencies to the highest rating category.