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📘 '''Insurance Core Principles''' (ICPs) are a set of globally recognized supervisory standards issued by the [[Definition:International Association of Insurance Supervisors|International Association of Insurance Supervisors]] (IAIS) that define the essential elements of an effective [[Definition:Insurance regulation|insurance regulatory]] and supervisory framework. Numbering 26 principles — each accompanied by detailed standards and guidance — the ICPs cover the full spectrum of insurance supervision, from [[Definition:Licensing|licensing]] and [[Definition:Corporate governance|governance]] to [[Definition:Solvency|solvency]], [[Definition:Conduct of business|conduct of business]], [[Definition:Anti-money laundering|anti-money laundering]], and [[Definition:Group-wide supervision|group-wide supervision]]. They serve as the international benchmark against which the adequacy of any jurisdiction's insurance supervisory regime is assessed, most notably through the Financial Sector Assessment Programs (FSAPs) conducted by the [[Definition:International Monetary Fund|International Monetary Fund]] (IMF) and the [[Definition:World Bank|World Bank]].

🔍 Each ICP articulates a high-level principle and then elaborates it through a tiered structure of standards (which set out key requirements a supervisory system should meet) and guidance (which provides additional detail on how the standards can be implemented in practice). For example, ICP 14 addresses [[Definition:Valuation|valuation]], setting expectations for how [[Definition:Insurer|insurers]] should value their assets and [[Definition:Insurance liability|liabilities]] for solvency purposes — a topic where approaches differ markedly between jurisdictions using [[Definition:IFRS 17|IFRS-based]] frameworks and those following [[Definition:US GAAP|US GAAP]] or local statutory accounting. ICP 17 covers [[Definition:Capital adequacy|capital adequacy]], establishing that supervisors should set requirements reflecting the risks to which insurers are exposed — the conceptual foundation upon which the [[Definition:Insurance Capital Standard|Insurance Capital Standard]] (ICS) and [[Definition:Common Framework|ComFrame]] are built. The ICPs are principles-based rather than rules-based, recognizing that jurisdictions with different legal traditions, market structures, and levels of development will implement them in varied ways.

🌐 The real-world influence of the ICPs extends far beyond academic standard-setting. Jurisdictions that score poorly on FSAP assessments against the ICPs face reputational consequences that can affect their attractiveness to international insurers and reinsurers, their ability to participate in cross-border supervisory cooperation, and their access to international financial markets. For emerging insurance markets in Asia, Africa, and Latin America, the ICPs serve as a development roadmap, guiding the construction of supervisory institutions and legal frameworks from the ground up. For mature markets, they provide a common reference point that facilitates [[Definition:Supervisory college|supervisory college]] discussions, mutual recognition arrangements, and the resolution of cross-border supervisory disputes. As global insurance groups grow more complex and interconnected, the ICPs remain the foundational architecture on which the IAIS's broader ambitions for consistent international supervision — including ComFrame and the ICS — ultimately depend.

'''Related concepts:'''
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* [[Definition:International Association of Insurance Supervisors]]
* [[Definition:Common Framework]]
* [[Definition:Insurance Capital Standard]]
* [[Definition:Insurance regulation]]
* [[Definition:Solvency]]
* [[Definition:Group-wide supervision]]
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Definition:Insurance Core Principles - Revision history

PlumBot: Bot: Creating definition