The International Association of Insurance Supervisors (IAIS), a global body representing insurance supervisory authorities from more than 200 jurisdictions, has issued its Global Insurance Market Report (GIMAR) 2025, providing an overview of key developments influencing the sector.
It draws attention to rising allocations to private credit, pressures linked to geoeconomic fragmentation and rapid advances in artificial intelligence (AI), all of which are becoming central priorities for supervisors worldwide. It also stresses the growing importance of close oversight of climate-related exposures and cyber threats.
Released in Basel, the findings stem from the IAIS Global Monitoring Exercise, which tracks trends across major markets and evaluates possible sources of risk. This year’s analysis explores how global financial conditions and shifting business strategies are influencing insurers’ operations and supervisory expectations.
Toshiyuki Miyoshi, Chair of the IAIS Executive Committee, commented: “The 2025 GIMAR highlights the resilience of the global insurance sector amidst significant structural shifts. As insurers navigate the rapid expansion of private credit, manage risks from geoeconomic fragmentation, and embrace the evolving role of AI, supervisors must ensure that governance, risk management, and monitoring frameworks are strengthened to address these changes.”
Jonathan Dixon, Secretary General of the IAIS, said: “This year’s report reaffirms the IAIS’ commitment to identifying emerging risks and supporting supervisors globally in addressing these challenges. By enhancing our monitoring and supervisory frameworks, we aim to ensure the continued stability and resilience of the global insurance sector.”
The report notes that insurers continue to maintain strong capital buffers, steady liquidity and supportive profit levels. Non-life insurers saw better combined ratios across several regions, while life insurers benefited from favourable market movements and improved spreads. Despite ongoing geopolitical and economic uncertainties, expectations for 2026 remain steady.
Large international groups reported a minor decline in their systemic risk indicators, and the insurance sector continues to show a far smaller systemic footprint than the banking sector. The IAIS completed its scheduled review of the individual insurer monitoring methodology, further reinforcing its approach to assessing systemic risk. The Financial Stability Board reaffirmed its reliance on the IAIS Holistic Framework for understanding risk patterns in insurance.
A major section of the report reviews the expansion of private credit holdings, especially among life insurers. Although total exposures remain moderate, they are rising swiftly in several markets. The asset class may offer benefits tied to long-term liabilities and compensation for illiquidity, yet it also presents challenges involving valuation, liquidity, borrower quality and structural complexity. The findings reinforce themes explored in the IAIS Issues Paper released in November, which looks at shifts in the life sector, including growing use of alternative assets and cross-border asset-intensive reinsurance.
The report also examines the impact of geoeconomic fragmentation, citing trade frictions, sanctions, varying monetary policies and uneven market conditions as factors increasing financial volatility. These forces complicate asset-liability management for internationally active insurers. Supervisors are responding through expanded scenario work, additional data requests and closer coordination across borders.
AI usage continues to grow rapidly across underwriting, pricing and claims processes. While insurers note significant efficiency gains, the report identifies concerns involving oversight of models, transparency, cyber exposure, operational risks, data bias and dependence on external providers. The IAIS Application Paper released in July offers guidance to support responsible integration of AI.
Climate-related exposures in investment portfolios have remained steady, while underwriting data show shifting patterns in natural catastrophe coverage and reinsurance needs. Insurers and supervisors are increasingly turning to climate scenario analysis, despite challenges with data availability and methodology. The recent special GIMAR edition on protection gaps underscores the IAIS’ commitment to strengthening climate-risk assessment tools.
Reinsurers entered 2024 well-capitalised, with results stabilising following earlier years of elevated catastrophe losses. Premiums continued to rise, retention levels moved slightly higher and investment portfolios stayed conservatively positioned.
Looking ahead, the IAIS will expand its monitoring of alternative assets, continue to advance systemic-risk analysis, prepare supervisory guidance for structural changes in the life sector and further refine its climate-risk and protection-gap work as part of its 2026–2027 programme.
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