The International Association of Insurance Supervisors (IAIS) published the mid-year update of its 2025 Global Insurance Market Report, based on interim data from the 2025 Global Monitoring Exercise. The analysis indicates that the global insurance sector remained stable at year-end 2024, with solvency, liquidity and profitability positions holding up in aggregate and systemic risk scores for global insurance groups broadly consistent with year-end 2023. The update flags a 2025 macro backdrop of slower expected global growth, with trade tensions, market volatility and rising debt burdens posing risks to asset valuations and liability management, while diversified portfolios have supported investment and underwriting returns. Liquidity improved for many insurers, but the report notes pressures linked to higher allocations to illiquid assets, volatility and dividend payments. It also highlights that increases in some systemic risk indicators, including intra-financial assets and level 3 assets, were offset by reductions in indicators related to minimum guarantees on variable products and derivatives holdings. The 2025 sector-wide themes for supervisory focus are geoeconomic fragmentation, insurers’ growing investment in private credit and insurers’ adoption and governance of artificial intelligence, alongside added attention to cyber and climate-related risks. The IAIS said the year-end 2025 Global Insurance Market Report will be published in December and will expand the analysis of solvency, profitability and liquidity and discuss potential systemic risk developments in insurance relative to banking. It also expects the work on individual-insurer data and the sector-wide themes to be enriched through a supervisor feedback loop and a collective discussion among insurance supervisors in September.

Original source View in tracker