The International Association of Insurance Supervisors (IAIS) published an additional set of ancillary risk indicators for its Global Monitoring Exercise (GME), alongside amendments to liquidity metrics affecting the calculation of the Insurance Liquidity Ratio (ILR). The package is intended to strengthen monitoring of the global insurance sector’s credit risk, derivatives and reinsurance exposures. The new ancillary indicators are designed to provide additional insights within the GME without replacing existing indicators used in the individual insurer monitoring (IIM) assessment methodology. Reflecting the limits of single-indicator monitoring for these risk areas, the IAIS developed multiple metrics to support IIM risk assessments. The indicators were developed through a multi-year project that included public consultation between November 2024 and February 2025 and testing through IIM data collections, and the IAIS published both the final document and a resolution of consultation comments. The IAIS plans to continue assessing and refining the ancillary indicators.
International Association of Insurance Supervisors 2025-11-25
International Association of Insurance Supervisors adds ancillary risk indicators and revises Insurance Liquidity Ratio calculation for the Global Monitoring Exercise
The International Association of Insurance Supervisors (IAIS) released new ancillary risk indicators for its Global Monitoring Exercise, alongside changes to liquidity metrics affecting the Insurance Liquidity Ratio. These indicators aim to enhance monitoring of credit risk, derivatives, and reinsurance exposures in the global insurance sector. The IAIS will continue to assess and refine these indicators.