International Association of Insurance Supervisors completes Holistic Framework implementation assessment cycle with 2025 jurisdictional review and progress monitoring

The International Association of Insurance Supervisors (IAIS) published two reports that close its multi-year cycle assessing how supervisors have implemented the Holistic Framework for mitigating systemic risk in the insurance sector. Across 16 major insurance markets, the assessment points to generally strong implementation, while highlighting remaining gaps, particularly in resolution capabilities and liquidity risk disclosure. The 2025 Targeted Jurisdictional Assessment (TJA) reviewed six jurisdictions acting as group-wide supervisors for 10 Internationally Active Insurance Groups (IAIGs): Australia, Bermuda, Italy, Singapore, South Africa and Spain. It found robust IAIG identification processes and macroprudential data collection, but noted gaps in group-level analysis and in translating macroprudential insights into supervisory action. On liquidity risk management and disclosure, foundational frameworks were in place, but supervisory approaches diverged and some jurisdictions lacked enforceable requirements for stress testing, contingency funding plans and liquidity risk reporting. Recovery planning frameworks were described as well-developed, yet shortcomings persisted in resolution powers and management information systems; work is underway to establish crisis management groups (CMGs) for all IAIGs. Four jurisdictions were rated “observed” or “largely observed” on at least 70% of standards, and two jurisdictions were described as particularly advanced, although recovery and resolution remained an area for improvement in some cases. In parallel, the 2025 progress monitoring exercise reviewed follow-up by the 10 jurisdictions covered in the 2022 TJA: Canada, China, Hong Kong, France, Germany, Japan, the Netherlands, Switzerland, the United Kingdom and the United States. It reports strengthened resolution powers, more formal recovery plan requirements and expanded supervisory guidance (including stress testing and recovery planning), alongside progress in operationalising CMGs and enhancing macroprudential supervision and liquidity risk management. The IAIS flagged remaining gaps in resolution powers, resolution planning and liquidity risk disclosures, and positioned the findings as an input for potential further supervisory guidance and for future assessments of other IAIS standards such as ComFrame and the Insurance Capital Standard.