Global Insurance Industry Demonstrates Stability Amid Uncertainty

In the aggregate, the global insurance industry demonstrates stable solvency and profitability positions, according to a mid-year preview of the International Association of Insurance Supervisors (IAIS) Global Insurance Market Report (GIMAR) 2026.

Those stable positions are supported by the global insurance sector's strong operational performance, effective asset-liability management, and robust capital buffers, the IAIS said.

Liquidity positions have also remained stable for many insurers, the IAIS report said, although challenges remain due to increased allocations to illiquid assets, share buybacks, debt repayments, dividend payments, and market volatility.

The aggregate systemic risk scores of global insurance groups were slightly higher at the end of 2025 than at the end of 2024, the IAIS said, with the largest increases recorded in asset liquidation to generate excess cash and interconnectedness between insurers, financial markets, and the broader economy.

The international insurance supervisors group said the year-end GIMAR will provide greater detail on the underlying drivers of changes in systemic risk indicators and share a cross-sectoral perspective, comparing those developments to those seen in the banking sector.

"The mid-year GIMAR highlights the insurance sector's strength and adaptability in the face of continuing global challenges," Toshiyuki Miyoshi, chair of the IAIS Executive Committee, said in a statement. "This year's risk assessment by global insurance supervisors at the IAIS continues to focus on ensuring the financial stability of the insurance sector, enabling it to withstand potential risks arising from geopolitical tensions, macroeconomic challenges, and cyber threats."

The IAIS noted that geopolitical tensions, inflationary pressures, and elevated sovereign debt levels present complexity for insurers' balance sheets and business models in 2026, requiring a heightened focus on effective risk management, diversification, and the adaptability of business models.

Each year, the IAIS identifies sector-wide themes that are top priorities for insurance supervisors worldwide. For 2026, those themes focus on macroeconomic risks with an impact on life insurers' balance sheets, transmission channels of geopolitical risk in nonlife insurance, and the impact of advancements in artificial intelligence and technology on insurers' cyber resilience.

The mid-year GIMAR is based on preliminary findings from the IAIS 2026 Global Monitoring Exercise, analyzing emerging trends and risks within the global insurance sector.