Regulatory Alerts2025-03-28
GFSC Guidance Note on Liquidity Risk Management for Insurers
The Gibraltar Financial Services Commission issued this guidance to define regulatory expectations for insurers regarding liquidity risk management frameworks under the Insurance Companies Regulations 2020. It requires insurers to establish robust governance structures, including board-approved risk appetite statements, comprehensive stress testing programs, and adequate liquidity buffers to meet liabilities during both normal and stressed market conditions. The document further mandates the identification of specific liquidity risk drivers, effective monitoring and reporting systems, and detailed contingency planning to ensure solvency and operational resilience.
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