“Global Insurance Market Report 2024: IAIS Highlights Systemic Risk Trends, Resilient Solvency Levels, and Emerging Sector Challenges”

The International Association of Insurance Supervisors (IAIS) today unveiled its Global Insurance Market Report (GIMAR) 2024, shedding light on pivotal findings from its Global Monitoring Exercise (GME). A cornerstone of the IAIS’ commitment to global financial stability, the GME tracks critical risks and trends while preemptively identifying systemic vulnerabilities within the insurance sector. Covering over 90% of global written premiums and analyzing data from approximately 60 major international insurers, the report serves as a vital resource for supervisors worldwide to take timely, informed actions.

Reflecting on this year’s findings, the report confirms the resilience of the global insurance industry, highlighting stable solvency and profitability levels amid a complex macroeconomic landscape. Strong underwriting performance and robust investment returns have been instrumental in sustaining this stability, even as insurers’ systemic footprint slightly increased, though remaining well below banking sector levels.

Two central themes define this year’s analysis: the impact of the macroeconomic environment and transformative shifts in the life insurance sector. A notable trend is the sector’s growing allocation to alternative investments and cross-border, asset-intensive reinsurance. Additionally, the report delves into critical risks, such as the insurance sector’s exposure to transition risks in investment portfolios and the growing materiality of natural catastrophe risks.

Looking ahead, life insurers are poised to enhance their solvency ratios, driven by effective risk management and strong capital reserves, while non-life insurers are expected to maintain stability through solid underwriting and investment income. However, global uncertainties—spanning geopolitical tensions, evolving digital threats, and the rapid integration of AI technologies—remain formidable challenges.

As the IAIS advances its systemic risk monitoring and prepares for several initiatives in 2025, this year’s GIMAR serves as a reflection of the industry’s progress and a roadmap for navigating future uncertainties. With an emphasis on collaboration and proactive measures, the IAIS reaffirms its dedication to safeguarding financial stability in an ever-evolving global landscape.