IAIS introduces additional ancillary risk indicators for its Global Monitoring Exercise

The IAIS today published an additional set of ancillary risk indicator for its Global Monitoring Exercise (GME). 

The ancillary risk indicators serve as a tool to facilitate the IAIS’ monitoring of the global insurance sector’s credit risk, derivatives and reinsurance. Additionally, some amendments to the liquidity metrics, specifically to the calculation of the Insurance Liquidity Ratio (ILR), are introduced. 

The new ancillary indicators will offer additional insights into credit risk, derivatives and reinsurance within the GME, while not replacing any existing indicators of the individual insurer monitoring (IIM) assessment methodology. Recognising the complexity of monitoring credit risk, derivatives and reinsurance based on single indicators, the IAIS has developed multiple metrics to support the risk assessment in the IIM. 

The metrics were developed as part of a multi-year project, which has benefited from public consultation held between November 2024 and February 2025, as well as extensive testing through the IIM data collections. In addition to the document describing the ancillary indicators, the IAIS has also published the resolution of comments received in the public consultation. The IAIS will continue to assess and refine the ancillary indicators going forward. 

To read the final document and the resolution of comments, visit the consultation page.