The International Association of Insurance Supervisors (IAIS) has published an updated Global Monitoring Exercise (GME) document setting out the GME’s objectives and process, including a revised methodology for calculating the systemic footprint of individual insurers. The changes reflect the 2023–2025 three-year review cycle and follow a public consultation held from June to August 2025. The update revises insurer pool selection criteria, amends the definition of the Level 3 assets indicator, and simplifies the calculation of intra-financial assets and intra-financial liabilities indicators, with related updates to the short-term funding indicator and the Insurance Liquidity Ratio (ILR). It also amends the minimum guarantees on variable products (MGVP) indicator, updates denominators used in the absolute assessment approach to year-end 2024 values based on the revised indicator definitions, and removes the rescaling factor between the liability liquidity and short-term funding indicators. IAIS also published a detailed resolution of consultation comments alongside the final document.
International Association of Insurance Supervisors 2025-11-25
International Association of Insurance Supervisors publishes updated Global Monitoring Exercise methodology for insurers’ systemic footprint
The International Association of Insurance Supervisors (IAIS) released an updated Global Monitoring Exercise document, revising the methodology for calculating insurers' systemic footprint. Key changes include adjustments to insurer pool selection criteria, Level 3 assets indicator, and simplification of intra-financial assets and liabilities indicators. The update follows a public consultation and includes a resolution of consultation comments.