The report highlights the resilience of the global insurance sector and examines key sector-wide themes including growth of private credit investments, geoeconomic fragmentation and AI adoption, alongside emerging risks such as climate and cyber risks.
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.
The ancillary risk indicators in the Global Monitoring Exercise (GME) 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 updated Global Monitoring Exercise (GME) document outlines the objectives and process of the GME. Revisions include an updated methodology for calculating the systemic footprint of individual insurers.
The IAIS has published a comprehensive supervisory analysis and agreed on a path forward to respond to potential risks arising from the increasing allocation to alternative assets and adoption of cross-border asset-intensive reinsurance (AIR) by life insurers.
