The International Association of Insurance Supervisors has opened a public consultation on a draft Issues Paper analysing structural shifts in the life insurance sector, with a focus on growing allocations to alternative assets and the rise of cross-border asset-intensive reinsurance (AIR). The paper aims to frame macroprudential and financial stability implications and identify potential enhancements to IAIS supervisory material. The draft covers how alternative assets could be defined and classified and reviews trends and drivers, including issues such as hidden leverage, liquidity risk, credit risk and credit ratings, and regulatory capital-related considerations. It also examines AIR, including how differences across jurisdictions in reserving, capital requirements and investment flexibility may be contributing to increased AIR activity, and summarises supervisory risk assessments and responses. A further section outlines macroprudential considerations, market interconnectedness and financial stability risks, and the paper flags areas where IAIS supervisory material could be strengthened to address the identified risks. Comments are due by 19 May 2025 at 24:00 CEST via the IAIS consultation tool, and only submissions made through the tool will be considered; comments will be published unless confidentiality is requested through the tool. A public background session webinar on the draft Issues Paper is scheduled for 3 April 2025.

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