2024年全球保险市场报告 Global Insurance Market Report (GIMAR) 202407

InternationaAssociationofInsurancesupervisors

GlobalInsurance

MarketReport(GIMAR)

July2024

MID-YEARUPDATE

71,745.3453,739.16

62,735.1152,862.16

52,862.1681,682.16

68,653.1620,935.55

22,282.5542,527.55

62,882.5546,519.96

52,655.9660,879.96

36,537.3949,736.26

55,590.2973,071.93

74,644.2980,459.22

75,938.5562,802.35

46,519.9645,619.30

60,879.9652,862.16

81,682.1668,653.16

81,682.1668,653.16

20,935.5522,282.55

42,527.5562,882.55

46,519.9652,655.96

25.3528.3525.1629.2725.8026.6928.8719.6520.9029.8216.1510.2220.2015.5910.22

53,739.16

12.67

2024MID-YEARGIMARUPDATE

AbouttheIAIS

TheInternationalAssociationofInsuranceSupervisors(IAIS)isavoluntarymembershiporganisationofinsurancesupervisorsandregulatorsfrommorethan200jurisdictions.ThemissionoftheIAISistopromoteeffectiveandgloballyconsistentsupervisionof

theinsuranceindustryinordertodevelopandmaintainfair,safeandstableinsurancemarketsforthebenefitandprotectionofpolicyholdersandtocontributetoglobal

financialstability.

Establishedin1994,theIAISistheinternationalstandard-settingbodyresponsible

fordevelopingprinciples,standardsandothersupportingmaterialforthesupervisionoftheinsurancesectorandassistingintheirimplementation.TheIAISalsoprovidesaforumformemberstosharetheirexperiencesandunderstandingofinsurance

supervisionandinsurancemarkets.

TheIAIScoordinatesitsworkwithotherinternationalfinancialpolicymakersand

associationsofsupervisorsorregulatorsandassistsinshapingfinancialsystems

globally.Inparticular,theIAISisamemberoftheFinancialStabilityBoard(FSB),

memberoftheStandardsAdvisoryCounciloftheInternationalAccountingStandardsBoard(IASB),andpartnerintheAccesstoInsuranceInitiative(A2ii).Inrecognitionofitscollectiveexpertise,theIAISalsoisroutinelycalleduponbytheG20leadersandotherinternationalstandard-settingbodiesforinputoninsuranceissuesaswellas

onissuesrelatedtotheregulationandsupervisionoftheglobalfinancialsector.

Formoreinformation,pleasevisit

andfollowusonLinkedIn:

IAIS–InternationalAssociationofInsuranceSupervisors

.

AbouttheGIMAR

TheGIMARreportsontheoutcomesoftheIAIS’GlobalMonitoringExercise(GME).

TheGMEistheIAIS’frameworkformonitoringrisksandtrendsintheglobalinsurancesectorandassessingthepossiblebuild-upofsystemicrisk.Thisisthemid-year

updatefortheGIMAR2024.

ThisdocumentisavailableontheIAISwebsite(

).

©InternationalAssociationofInsuranceSupervisors,2024.

Allrightsreserved.Briefexcerptsmaybereproducedortranslatedprovidedthesourceisstated.

I

2024MID-YEARGIMARUPDATE

Contents

1INTRODUCTION

1

2SOLVENCY,LIQUIDITYANDPROFITABILITY

2

3AGGREGATESYSTEMICRISKSCORES

4

4KEYTHEMESFROMTHE2024GME

5

4.1Managinginterestrate,liquidityandcreditrisksinachallengingmacroeconomicenvironment

5

4.2Structuralshiftsinthelifeinsurancesector

7

4.3IAISworkonotherhighpriorityrisks

9

5NEXTSTEPS

11

II

2024MID-YEARGIMARUPDATE

1

1.Introduction

Themid-yearGlobalInsuranceMarketReport(GIMAR)summarisestheinterimoutcomesoftheIAIS’2024GlobalMonitoringExercise(GME)aheadofthepublicationoftheyear-endGIMAR.

Thisreportcontainspreliminarystatisticsonsolvency,profitabilityandliquiditypositionsoftheglobalinsurancesector;sharesaggregatesystemicriskscores;andelaboratesonkeyfocus

areasforthe2024GME.

The2024GMEanalysiscontinuestofocusonlastyearsthemes,whichremainapriorityforinsurersandsupervisors.Theseinclude:

1.Interestrate,liquidityandcreditrisksfacedbyinsurersinlightofthechallengingand

uncertainmacroeconomicenvironment;and

2.Structuralshiftsinthelifeinsurancesector,

suchasincreasedallocationofcapitalto

alternativeassetsandincreaseduseofcross-borderasset-intensivereinsurance.

Specificareasofattentionunderthefirstthemeare

transmissionchannelsfromgeopoliticalrisks,second-

roundeffectsfromcommercialrealestate(CRE)

exposures,debtsustainabilityoffixed-incomeassetsandtheimpactofdigitalisationandartificialintelligence(AI)

ontheinsurancesector.Regardingthesecondtheme,

theIAISwillcontinueitsmonitoringandassessmentofpotentialfinancialstabilityrisks,whichwillfeedintoanIssuesPaper,plannedforpublicationin2025.

Thismid-yearupdateisbasedonpreliminary

GME2024datacollecteduptoJune2024.1

Resultsaresubjecttochangeinthe2024year-endGIMAR.Dataincludesthe2024individualinsurer

monitoring(IIM),applicabletoinsurancegroups

meetingtheInsurerPoolcriteria2consisting

ofapproximately60ofthelargestinternational

insurancegroupsfrom18jurisdictionsandthe

qualitativesector-widemonitoring(SWM)data,

coveringaggregateinsurancemarketdatacollectedfromIAISmembersandcomprisingmorethan

90%ofglobalgrosswrittenpremiums.QuantitativeSWMdatawillfeatureintheyear-endGIMAR.

1ThequantitativeGME2024datahasyear-end2023asareferencedate(exceptforonejurisdictionwithafinancialyearendinginMarchinsteadofinDecember).ThequalitativeGME2024componentalsohasaforward-lookingperspective,focusingonexpecteddevelopmentsin2024and2025.

2TheInsurerPoolcriteria,asoutlinedinthe

GMEdocument

,are:totalassetsofmorethan$65billionandaratioofpremiumsfromjurisdictionsoutsidethehomejurisdictiontototalpremiumsof5%ormore,ortotalassetsofmorethan$215billionandaratioofpremiumsfromjurisdictionsoutsidethehomejurisdictiontototalpremiumsgreaterthan0%,oruptojurisdictionaldiscretion($referstoUnitedStatesdollars).

2024MID-YEARGIMARUPDATE

2

2.Solvency,liquidity

andprofitability

Aggregateparticipatinginsurers’solvency,liquidityandprofitabilitypositionsremainedstablein2023.

Figure1showsthatsolvency,liquidityandprofitabilitypositionsamongstmostparticipatinginsurers

improvedslightlyandoverall,remainedstrong.

Themainfactorsaffectingsolvencyandprofitabilityincludehigherinterestratesinmanyregions(which

canlowerthepresentvalueofliabilities,particularlyforlifeinsurersofferinglonger-termproducts),higherpremiumincome,lowerdividendpaymentsby

insurersandanupturninfinancialmarketsleading

tohigherinvestmentreturns.Someinsurersnoted

changestoaccountingstandards,particularly

InternationalFinancialReportingStandards(IFRS)17,asafactoraffectingreportedprofitability.

Themovementinliquiditypositionsvariedacross

insurers.Someinsurersexperiencedincreasesin

liquidityduetofactorssuchashigherdividend

upstreams(whereasubsidiaryinsurerdistributes

profitstoitsparentinsurer),completionofassetsales,orbetteralignmentofliquiditysourcestoliquidity

needs,whileothersexperienceddeclinesbecauseofincreasedcashoutflowsorchangesintheir

investmentportfoliocomposition.

Participatinginsurerstookadditionalmeasuresto

managemacroprudentialheadwinds,maintainingstableandresilientsolvencyandliquiditypositions.Such

measuresincludedevelopingnewcapital,liquidityandreserverequirementmodels;collectingmorein-depthdata;andmonitoringinterconnectednessbetween

thebankingandinsurancesectors.Participating

insurersalsoenhancedinsuranceriskmonitoringandassessmentframeworks,includingstresstesting.

Interimoutcomes

fromtheGlobal

MonitoringExercise

indicatedoverallstability

intheinsurance

sector.

2024MID-YEARGIMARUPDATE

FIGURE1:Aggregatesolvency,liquidityandprofitabilitypositions

250%

200%

150%

100%

50%

0%

Solvencyratios

(YE19–YE23,in%)

YE19YE20YE21YE22YE23

250%

200%

150%

100%

50%

0%

Insuranceliquidityratio

(1year)(YE19–YE23,in%)

YE19YE20YE21YE22YE23

1.0%

0.8%

0.6%

0.4%

0.2%

0.0%

Returnonassets

(YE19–YE23,in%)

YE19YE20YE21YE22YE23

Source:IIM2024–interimresults

Mostparticipating

insurersexpectstability

overthenexttwo

years,howevernote

theuncertainglobal

macroeconomic

trajectory.

Lookingahead,mostparticipatinginsurersexpect

stabilityoverthenexttwoyears(ienosignificant

changesinsolvency,profitabilityandliquidity

positions).However,someinsurersforeseeaslight

deteriorationinpositions,largelyduetouncertaintyonthefutureglobalmacroeconomictrajectoryand

specificcircumstancesthatareuniquetoeach

insurer.Factorssuchasgeopoliticalrisk,limited

businessdevelopmentopportunities,regulatory

changes,debtrepayments,deleveragingtargets

andexpectationsoffinancialmarketvolatilitywere

highlightedaspotentialinfluencesonfuturesolvencyandliquiditypositions.Areasofincreasedfocus

includecyberriskandoperationalresilience,climate-relatedriskandtheimplementationofnewregulatoryregimessuchasrisk-basedcapitalandIFRS17.

The2024year-endGIMARwillprovidemoreinsightintochangesininsurers’solvency,profitabilityandliquidity,categorisedbyregionandbusinessmodel.

2024MID-YEARGIMARUPDATE

4

3.Aggregate

systemicriskscores

Figure2showsthataggregateIIMsystemicriskscoresincreasedatyear-end2023comparedto

year-end2022.3

Thekeydriverfortheincreasewasariseinthelevel3

assets4indicator,primarilydrivenbyaccounting

changes.ForsomeinsurerswithintheInsurerPoolthatreportunderIFRS,theimplementationofIFRS17,in

combinationwithadelayedimplementationofIFRS9,

ledtoaconcurrentreclassificationofcertainassets

fromamortisedcosttofairvalue.Becauseassetswhosevaluationisbasedonunobservableinputs(mark-to-

modelassets)areclassifiedaslevel3whenheldatfairvalue,thisreclassificationresultedinamaterialincreaseinthelevel3assetsindicatorinaggregate.Overall,

thetotalamountofmark-to-modelassets(ieadding

bothassetsheldatfairvalueandassetsheldatcost)

remainedrelativelystable.TheIAISisconductingfurtheranalysistoevaluateoptionsforamorecomparable,

substance-basedriskassessmentofmark-to-model

assetsthatislessdependentonaccountingtreatment.

Theyear-endGIMARwillprovidemoredetailonthe

underlyingdriversofchangesinsystemicriskindicatorsandshareacross-sectoralperspectivecomparing

thesedevelopmentstothoseinthebankingsector.

FIGURE2:Aggregatesystemicriskscores

(YE19–YE23,inbps)

10,000

8,000

6,000

4,000

2,000

0

YE19YE20YE21YE22YE23

Source:IIM2024–interimresult

Thekeydriveroftheincrease

inaggregatesystemicrisk

scoreswasariseinthelevel3

assetsindicator,mainlydriven

byaccountingchanges.

3Forthepurposesofthiscomparison,onlydatafrominsurersthatparticipatedintheIIM2020to2024(year-end2019toyear-end2023data)wasincluded.

4Level3assetsareIlliquid,difficult-to-valueassetsheldatfairvalue.

2024MID-YEARGIMARUPDATE

5

4.Keythemesfrom

the2024GME

The2024GMEanalysiscontinuestofocusonlastyear’sthemes,whichremainapriorityfor

insurersandsupervisors.Theseinclude(1)risksfacedbyinsurersinlightofthechallenginganduncertainmacroeconomicenvironmentand(2)structuralshiftsinthelifeinsurancesector,suchasincreasedallocationofcapitaltoalternativeassetsandincreaseduseofcross-borderasset-intensivereinsurance.

4.1MANAGINGINTERESTRATE,

LIQUIDITYANDCREDITRISKS

INACHALLENGING

MACROECONOMICENVIRONMENT

Theglobaleconomyhasdemonstratedstrong

resilienceagainsthigherinterestratesinseveral

jurisdictions,despiteconcernsaboutstagflationandaglobaleconomicrecession.Economicgrowthin2023wassupportedbylowerglobalinflation,increased

governmentspendingandincreasedhousehold

consumption.Theoutlookforthenexttwoyears

remainsstable,withgrowthexpectedtobesupportedbyacontinueddeclineininflation.However,growth

couldbenegativelyaffectedbyprolongedhighinterestratesincertainmarkets,highgovernmentdebt,a

tighteninginmonetaryand/orfiscalpoliciesandgeopoliticaltensions.

Heightenedgeopoliticaltensionsinthecurrenteconomicenvironmentmayimpactglobalfinancialstabilitythroughvariouschannelssuchaseconomicgrowth,trade

relations,marketconfidence,supplychains,inflation

andinterestrates.Asaresult,insurersmayexperienceincreasedfinancialmarketvolatilityanddeclinesinassetprices,affectingunderwritingandinvestmentreturns.

Additionally,cyberattackshaveincreasedinthedigitalera,whichcancompromisedataintegrity,disrupt

operationsandresultinfinanciallosses.

TheIAISwillcontinuetomonitorthesedevelopments

closelyfortheglobalinsurancesector.The2024GIMARwillelaboratefurtherontransmissionchannelsfrom

geopoliticalrisks,aswellasonthemeasuresinsurersandsupervisorscantaketomitigatetheimpactof

theserisks.

Heightenedgeopoliticaltensionsmayaffectfinancial

markets,impactinginsurers.

2024MID-YEARGIMARUPDATE

6

Interestrateandliquidityrisk

Oninterestrateandliquidityrisk,keyareasofattentioninthe2024GMEinclude:

ILapsesandsurrenders:The2024GMEinterim

outcomesindicatethat,despitehigherinterestrates

andinflationinseveralmarkets,lapsesandsurrendersrecordedsmallincreasesin2023,comparedtothe

largeincreasesobservedinpreviousyears.Thiswaslargelyduetoeconomicpenaltiesandtaxincentivestodiscouragesurrenderingoflifepolicies.However,inaperiodofprolongedhighinterestratesandinflation,insurersmaycontinuetofacechallengesinmanagingtheircashflowobligationsandmaintainingsufficientliquiditytomeetthedemandsofpolicyholders.

Whilenewsalesofinsuranceproductscanoffsetanincreaseinsurrenders,earlysurrenderscandisruptinsurers’long-termfinancialplanningandprofitability,astheymayhaveanticipatedalongerdurationof

policyholderparticipationandpremiumpayments.

Legacypoliciesissuedduringthepreviousprolongedperiodoflowinterestrates,especiallythosewith

rateguaranteesandlowsurrenderpenalties,maybeparticularlysusceptibletoearlysurrenders.

IFunding:Inahighinterestrateenvironment,insurersthatrelyonshort-termfunding,orhavesignificant

outstandingshort-termdebt,mayfaceliquidity

pressureswhenrefinancingorrollingovertheirdebt.Higherinterestratesleadtoincreasedborrowing

costs,therebymakingtherenewalorrefinancing

ofshort-termobligationsmoreexpensive.Thiscan

straininsurers’cashflowandliquiditypositions.

Insurerswithalargeamountofshort-termdebt,dueforrefinancingwithinashortperiod,mayencounterchallengestosecuringnewfundingornegotiating

favourabletermswithlenders.Failuretorefinance

orrolloverdebtsuccessfullycanleadtoliquidity

constraints,affectinginsurers’abilitytomeetfinancialobligationsandinvestingrowthopportunities.

IDerivativesandmargincalls:Derivatives,suchasinterestrateswapsusedtohedgetheimpactofinterestratechanges,serveasimportant

riskmanagementtools.However,inaperiodof

prolongedhigherinterestrates,insurersmayface

collateralcallsintheformofvariationmargin,

particularlyforcentrallyclearedcontracts.Inthis

case,insurersneedtoprovideadditionalcollateraltocoverpotentiallossesorfluctuationsinderivativevalues.Thiscanleadtoincreasedfundingneeds

andliquiditypressures.Supervisorsareofthe

viewthattheseriskscouldbemitigatedthroughincreasedmonitoringofderivativepositionsandtheuseofliquiditybuffersandhedgingstrategies.

IImpactofdigitalisationandAI:The2023bankingsectorturmoildemonstratedthespeedatwhich

customerscanactcollectively,withsomeevidencethatsocialmediahadaninfluenceonseveral

recentbankruns.Furthermore,technological

advancementshavefacilitatedamorerapidtransferoffinancialassetsinrecentyears.Supervisorsnotethattheinsurancesectorshouldbemindfulofthesedevelopments,especiallywhereAItechnologies

playaroleintheinsurancesector’sdistribution

channels,potentiallyinfluencingcustomer

behaviourandtheriskoflapsesandsurrenders.AItechnologiesmayprovidebenefits,suchas

supportinginsurers’modelling,understanding

andanalysisofcustomerbehaviouracross

differentchannels,tailoringmarketingstrategiesandoptimisingdistributiontomitigatelapses

andsurrenders.However,increaseduseofdigitaltoolsandAImayalsoincreasecybersecurityandreputationalrisks.Cybersecuritybreachesmay

resultinfinanciallosses,reputationaldamageandregulatoryconsequences.Insurerscanconsider

prioritisingcybersecuritymeasurestoprotect

againstthesepotentialrisks(seealsosection4.3).

2024MID-YEARGIMARUPDATE

7

Creditrisk

Oncreditrisk,keyareasofattentioninclude:

ICRE:Therealestatesector,particularlyCRE

(officeandretailspaceandtoalesserextent,

industrialspace),hasfacedsignificantstresssince

theCovid-19pandemicduetolowerdemand.

This,combinedwithhigherinterestrates,has

resultedinadeclineinglobalCREprices.Althoughsupervisorsindicatedthatsomeinsurersincreased

theirassetallocationtoCREinrecentyears,

insurers’aggregateexposurestoCREremain

generallylimited.However,thereisapossibilityof

second-ordereffectsmaterialising.Themarketfor

securitisationsofrealestateassetsisalsounder

pressure,impactingliquidityandinvestorconfidence.

IFixed-incomeinvestmentexposure:Highinterest

ratesincreasethecostofborrowingforfixed-incomesecurities,whichincludesovereigndebt,corporatedebtandrealestate,therebyputtingpressureon

debtsustainability.Thishasimplicationsforthe

insurancesector,whichoftenholdssubstantial

exposurestothesetypesofassetstogenerate

incomeandmanagerisk.Increasesincredit

spreads,downgradesanddefaultsincertainmarketswarrantincreasedattention.Fromasupervisory

perspective,theseriskscanbemitigatedifinsurerscloselymonitortheirfixed-incomeholdings,assess(illiquid)assetvaluationandissuercreditworthiness’andadjustinvestmentstrategiesaccordingly.

Robustriskmanagementframeworks,includingriskdiversificationandstrongasset-liabilitymanagement,arecrucial.Stresstestingandscenarioanalysis

canhelpidentifyvulnerabilitiessothatinsurerscanimplementappropriateriskmitigationmeasures.

Inthe2024GIMAR,theIAISwillconductamore

in-depthanalysisofhowtheinsurancesectoris

respondingtotheaforementionedchallenges.Thefocuswillbeonevaluatingtheimpactofthese

conditionsoninterestrate,creditandliquidityrisks.

Thisassessmentwillinvolveidentifyingkeyexposuresandvulnerabilitieswithinthesector.TheIAISwill

closelyexaminethemeasuresimplemented,or

planned,byinsurersandsupervisors.Throughthis

analysis,theIAISaimstoenhanceitsunderstandingofhowtheinsurancesectorisnavigatingthecomplexitiesofhighinterestratesandinflation.Thefindings

fromthisassessmentwillbeusedtopromotethe

developmentofrobustriskassessmentframeworksandsoundriskmanagementpractices,contributingtoaresilientandstableglobalinsurancesector.

4.2STRUCTURALSHIFTSINTHELIFEINSURANCESECTOR

Ashighlightedinthe2023GIMAR,thelifeinsurancesectorisexperiencingsignificantstructuralshifts

thathavethepotentialtoimpactvariousaspectsoftheinsuranceindustry.TheIAIShasincreasinglyfocusedontwomaintopics,whichare:

1.Agreaterallocationofcapitaltoalternativeassets;and

2.Thegrowinguseofcross-borderasset-intensivereinsurance.

Theshifttoalternativeinvestmentsismaterial

forsomelifeinsurers.Theuseofasset-intensivereinsuranceisalsoincreasing,notablyforcapital-intensiveliabilities.Thesetrendsemergedinthepreviouslowyieldenvironmentbutarecontinuinginthecurrentenvironmentofhigherinterestrates.

TheIAISwillcontinuetomonitorinterest

rate,liquidityandcreditrisksinachallenging

macroeconomicenvironment.

2024MID-YEARGIMARUPDATE

8

TheworkconductedbytheIAISthusfarhighlightsthefollowingkeypoints:

IGrowinginvestmentsinalternativeassetshave

thepotentialtoincreaseexposuretorisksrelatedtoliquidity,valuation,hiddenleverageandcredit,alongwithagencyissuesrelatedtoaffiliated-partytransactionsthataresometimesassociatedwithsuchinvestments.

ICross-borderasset-intensivereinsuranceraises

supervisoryconcernsinsomemarkets,including

knowledgegapsinnon-domesticprudential

frameworks,limitedinformationexchangeand

conflictsofinterestwithincorporatestructures.

Potentialfinancialstabilityriskscouldencompass

jurisdictionalandreinsurer-levelconcentrationrisks,aswellaspotentialherdbehaviouramongstinsurers.

Allocationofcapitaltoalternativeassets

Interimoutcomesfromthe2024GMEindicatea

continuedincreaseinassetallocationtowards

alternativeinvestments.Somesupervisorshave

indicatedthatinsurershaveincreasedtheirasset

allocationtowardCRE,eitherdirectlyorindirectly

throughrealestateinvestmentfunds,equityholdingsinrealestatecompanies,commercialmortgage-

backedsecuritiesorcommercialmortgageloans.

Theshifttoalternative

investmentsismaterial

forsomelifeinsurersand

theuseofasset-intensive

reinsuranceisalso

increasing.

Cross-borderasset-intensiveinsurance

Regardingasset-intensivereinsurance,supervisors

havenotedanincreasedinterestandactivityinasset-intensivereinsuranceinsomemarkets.Inregions

withsubstantiallifeinsurancesectors,asset-intensive

reinsuranceisreceivingincreasedsupervisoryoversight;however,theimpactandadoptionofsuchreinsuranceactivitiesvary,reflectingtheuniquemarketdynamics

andregulatoryframeworksacrossthedifferentregions.

ParticipatinginsurersintheIIMreportedpositive

trendsinthelifesector,withincreasinggrosswrittenpremiumsin2023.Themarketoutlookforasset-

intensiveproductsisinfluencedbyarangeoffactors,includinginvestmentspreadlevels,regulatorychangesandsupervisoryoversight.Higherinterestratesand

pensionreformsaredrivinggrowthinbulkpurchaseannuityandpensionrisktransferdeals,whichtendtobesupportedbyasset-intensivereinsurance

agreements.However,somerespondentsnotedthatlowerspreadsincontinentalEuropemaytemper

theriskappetiteforbackbooktransactions.

Inregionswithlowinterestrates,primaryinsurers’

riskappetiteforasset-intensiveproductsisstated

tobelimitedbyunderwritingcosts.Someprimary

insurersconsiderasset-intensivereinsurancetobeavaluabletooltofreeupcapitalandcedeinvestment

risk,andtheyexpectitsusetocontinue.Theoutlookforuniversalandwholelifeinsurancevaries,with

growthexpectedintheAsia-PacificandAmericas

regions,particularlyforthehighnetworthsegment.

Somereinsurersviewthesemarketsasanopportunity,drivenbyclientneeds,withplanstosupportinsurersinreleasingcapitalassociatedwithlargebackbooks.

2024MID-YEARGIMARUPDATE

9

Nextsteps

TheIAISplanstocontinueitseffortsonthistheme

throughthe2024GME,withafocusonpotentialfinancialstabilityrisks.TheGMEwillcollectfurtherdataonthesetrends,gatherstakeholderinputandincorporateupdatesfromsupervisoryinitiatives.Theresultswillbepublishedinthe2024GIMAR.Inaddition,theIAISwilldevelopanIssuesPaperspecificallyfocusedonstructuralshiftsin

thelifeinsurancesector.TheIssuesPaperwillseektosharepracticesusedbyIAISmemberstosupervise:

IThepotentialriskslinkedtoahighercapital

allocationtoalternativeassets.Thepaperwill

developaprinciples-basedclassificationof

alternativeassetsforthepurposesofthisanalysis.

IThepotentialrisks,concernsandbenefitsassociatedwithcross-borderasset-intensivereinsurance,

includingtypesoftransactions,features,risks

andsafeguards,andjurisdictionalapproachestocapitalandcollateralrequirements,reservingandassetvaluation.

TheforthcomingIssuesPaperwillalsoassesswhetherthesupervisoryconcernsraisedinthe2023and2024

GMEandGIMARareadequatelyaddressedintheIAISsupervisorymaterial.TheIAISplanstolaunchapublicconsultationfortheIssuesPaperinthefirsthalfof2025.

TheIAISplanstopublish

anIssuesPaperin2025

onstructuralshiftsinthe

lifeinsurancesector.

4.3IAISWORKONOTHERHIGHPRIORITYRISKS

Inthe2024GME,supervisorsalsoidentifiedinsurers’cyberriskrelatedtotheiroperationsandclimate-

relatedrisk(notablyphysicalrisk)ashighpriorityareasofsupervisoryfocus.

Cyberoperationalrisk

TheIAIShasembarkedonseveralinitiativesto

enhancetheunderstandingofcyberresilienceatthe

individualinsurerlevelandthebroadersector-widelevel,includingthe

2023GIMARspecialtopic

(April2023)and

IssuesPaperonInsuranceSectorOperationalResilience

(May2023).

Stakeholderfeedbackonthe2023IssuesPaper

encouragedtheIAIStotakeaproportionate,risk-

focusedandprinciples-basedapproachtoanyfuture

workonoperationalresilience,withtheobjective

toencourageconsistency–whil