The FSB reaffirms its endorsement of the IAIS Holistic Framework for the assessment and mitigation of systemic risk in the insurance sector

• Following a further three-year review, the Financial Stability Board (FSB) has reconfirmed its 2022 decision that the Holistic Framework provides a more effective basis for assessing and mitigating systemic risk in the insurance sector than the annual identification of Global Systemically Important Insurers. 
• The IAIS will continue to support the FSB’s evaluation of systemic risk in the insurance sector by providing annual reports on the outcomes of its Global Monitoring Exercise and on the implementation of the Holistic Framework supervisory material by its members. 
• The IAIS also continues to advance the Holistic Framework, including through (1) an updated systemic risk assessment methodology; and (2) updates to Application Papers on recovery and resolution, launched today for public consultation. 

Basel, Switzerland – The Financial Stability Board (FSB) today issued a public communication reaffirming its endorsement of the IAIS Holistic Framework for the assessment and mitigation of systemic risk in the insurance sector (Holistic Framework) to inform its consideration of systemic risk in insurance, instead of the annual identification of Global Systemically Important Insurers (G-SIIs). 

“Six years following its adoption, the IAIS Holistic Framework’s strong implementation across risk assessment, supervisory policy measures and robust implementation assessment has reconfirmed its effectiveness for macroprudential supervision in the insurance sector, including in identifying and addressing key sector-wide risks” said Toshiyuki Miyoshi, IAIS Executive Committee Chair. “FSB and IAIS members continue to agree that it provides a more effective basis for assessing and mitigating systemic risk in the insurance sector than G-SII identification, which was discontinued in 2022. The IAIS is committed to continue refining the global risk assessment and ensuring robust implementation of supervisory measures.”  

Key points:  

1. The FSB, in consultation with the IAIS, has reviewed its experience utilising IAIS assessments from the IAIS Holistic Framework. Based on this review, the FSB has reaffirmed its 2022 decision to discontinue the annual identification of G-SIIs and to instead use IAIS Holistic Framework assessments. The annual update provided by the IAIS, described below, will also continue to inform the FSB’s ongoing work to evaluate vulnerabilities in the financial system.
2. The IAIS provides the FSB with an annual report of the outcomes of the Global Monitoring Exercise (GME), which is one pillar of the Holistic Framework. The annual update includes the IAIS assessment of systemic risk in the global insurance sector arising from sector-wide trends with regard to specific activities and exposures, the possible concentration of systemic risks at an individual insurer level, and the supervisory response to any identified risks. To this end, the IAIS will continue its data collection from individual insurers, complemented by data collection from supervisors, to support its assessments. The IAIS will continue to inform the FSB of changes made to the analyses used for the IAIS’ annual update to the FSB, including to the GME and its methodology.
3. Using the annual update provided by the IAIS, the FSB may, in consultation with the IAIS and national authorities, publicly express its views on whether any individual insurer is systemically important in the global context and the appropriate application of the Holistic Framework supervisory policy measures that the FSB considers necessary to address such systemic importance. The FSB may also ask the IAIS to undertake further analysis for this purpose.
4. The FSB will continue to publish in its Annual Resolution Report and on the FSB’s website a list of insurers that – according to member authorities’ assessment and self-reporting – are subject to resolution planning and resolvability assessments consistent with the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions (Key Attributes). The FSB may publicly express its views on the appropriateness and sufficiency of the set of reported insurers, based on whether an insurer could be systemically significant or critical if it fails. The FSB has published for consultation guidance to help authorities determine which insurers are subject to recovery and resolution planning requirements in the Key Attributes. The guidance is expected to be finalised in 2026. The IAIS will continue to contribute to the FSB’s resolvability monitoring process and the FSB’s annual public reporting. 

The FSB’s list of insurers subject to resolution planning standards consistent with the FSB Key Attributes was also published on the FSB website today. This includes communication that an insurer is not considered systemically important by virtue of being included in the list. 

Further updates to materials supporting the Holistic Framework 

The IAIS will continue to enhance the Holistic Framework, including through its triennial review of its GME assessment methodology and through updates to its supervisory and supporting materials. As part of this commitment, we have published several updates today to further support its implementation.   

• GME: The IAIS today published updated public documentation on its GME, reflecting changes and additions to the assessment methodology used for the GME following consultation with stakeholders:

• • • An updated Global Monitoring Exercise document, reflecting the outcome of the review of the Individual Insurer Monitoring (IIM) assessment methodology conducted in 2025, which will be effective starting 2026. The IIM assessment methodology calculates a total score for each of the IIM participating insurers. This score provides an indication of the extent of the possible build-up of systemic risk in the individual insurer.
      Changes have been made to include updates to the insurer pool selection criteria, amendments to the definition of the Level 3 assets indicator to make it less accounting sensitive, simplification of certain indicator calculations, and updating the indicator denominators and weights.
      Read the final document and resolution of public consultation comments here.
    • The Ancillary risk indicators in the GME document, introducing a further set of risk indicators on credit risk, derivatives and reinsurance, to aid the IAIS assessment of potential systemic risk in the global insurance sector. Additionally, some amendments to the liquidity metrics are introduced. These ancillary indicators do not impact the total quantitative scores of individual insurers but provide additional context that can inform the overall assessment of systemic risk.
      Read the final document and resolution of public consultation comments here.
• Public consultation on draft revised Application Papers on recovery and resolution  

The IAIS also published a draft revised Application Paper on resolution powers, preparation and plans and a draft revised Application Paper on recovery planning for public consultation.     

In December 2024, the IAIS adopted the updated Insurance Core Principles (ICPs) and Common Framework for the supervision of internationally active insurance groups (ComFrame), including recovery and resolution-related standards, which are part of the Holistic Framework. These standards were updated to further enhance their clarity and incorporate lessons learned from their implementation. The standards are further aligned with the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions. 

The IAIS has now reviewed and updated the existing Application Papers on recovery and resolution. These revisions provide further guidance on the updated ICPs and ComFrame standards, and provide insights into more recent practices and examples to support their application. 

Comments on the draft revised papers are invited by 25 February 2026, and a public background webinar to introduce the papers is scheduled for 14 January 2026.  

See details of the consultation, and a link to register for the webinar, here. 

In parallel, the FSB published for consultation its draft guidance on the scope of insurers subject to the recovery and resolution planning requirements in the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions. The guidance outlines what criteria authorities should consider in determining which insurers are subject to the recovery and resolution planning requirements in the Key Attributes, taking into account the relevant ICP standards and guidance where appropriate. The IAIS draft revised Application Paper on resolution above also includes references to the FSB guidance to promote consistent application.    

“In carrying out these initiatives to support the maintenance of global financial stability, the IAIS has been working in close coordination with the FSB to pursue alignment between our respective materials.” said Jonathan Dixon, IAIS Secretary General. “We will continue to collaborate closely with the FSB throughout the finalisation process.” 

About the Holistic Framework 

The Holistic Framework for the assessment and mitigation of systemic risk in the insurance sector (Holistic Framework), recognises that systemic risk may arise not only from the distress or disorderly failure of an individual insurer, but also from the collective exposures and activities of insurers at a sector-wide level. It consists of three key elements:  

1. 1. 1. Risk assessment through the GME, designed to monitor key risks and trends and detect the potential build-up of systemic risk in the global insurance sector, including a collective discussion among IAIS members of the outcomes of the analysis and the appropriate supervisory response. The GME collects data from 57 of the largest international insurance groups and aggregate insurance market data from IAIS members, comprising more than 90% of global gross written premiums;  
      2. An enhanced set of supervisory measures, designed to increase the overall resilience of the insurance sector and help prevent insurance sector vulnerabilities and exposures from developing into systemic risk (Holistic Framework supervisory measures); and  
      3. Robust assessment of the comprehensive and consistent implementation of the Holistic Framework supervisory measures across jurisdictions.

Learn more on the IAIS website. 

Download the press release in pdf here.

About the IAIS 

The IAIS is a global standard-setting body whose objectives are to promote effective and globally consistent supervision of the insurance industry to develop and maintain fair, safe and stable insurance markets for the benefit and protection of policyholders and to contribute to the maintenance of global financial stability. Its membership includes insurance supervisors from more than 200 jurisdictions. Learn more at www.iais.org. Follow us on LinkedIn: IAIS – International Association of Insurance Supervisors. 

Media contact:
Melanie Clowes 
+41 61 280 8442 
press@iais.org