The International Association of Insurance Supervisors (IAIS) has released two publications, marking the completion of its multi-year cycle of assessing implementation of the supervisory material of the Holistic Framework for systemic risk in the insurance sector.
The 2025 Targeted Jurisdictional Assessment (TJA) evaluated six new jurisdictions supervising 10 Internationally Active Insurance Groups (IAIGs). This followed an original assessment of 10 major insurance markets in 2022.
The IAIS also provided an update on progress made by the 10 original jurisdictions in addressing implementation gaps identified in the 2022 TJA.
These reports, covering 16 major insurance markets, provide a comprehensive picture of the global insurance sector’s progress in systemic risk mitigation, particularly in macroprudential supervision and international crisis management, while identifying areas for improvement, including resolution and liquidity risk disclosure.
The findings reaffirmed the importance of the Holistic Framework in strengthening global financial stability of the insurance sector.
Targeted Jurisdictional Assessments (TJA) and progress monitoring
The phased implementation assessment of the Holistic Framework supervisory material, through baseline assessments, TJA and progress monitoring, provides a comprehensive picture of supervisors’ efforts to strengthen the insurance sector’s resilience to systemic risk in major insurance markets.
The 2025 TJA evaluated six jurisdictions acting as group-wide supervisors for 10 Internationally Active Insurance Groups (IAIGs), namely Australia, Bermuda, Italy, Singapore, South Africa and Spain. In parallel, the IAIS conducted a progress monitoring exercise on the 10 jurisdictions assessed in the original 2022 TJA.
“The completion of this assessment cycle marks a significant milestone in the implementation of the IAIS Holistic Framework,” said IAIS Executive Committee Chair Toshiyuki Miyoshi.
“The progress made by jurisdictions to strengthen resilience to systemic risk demonstrates a commitment to fostering global financial stability. The IAIS remains dedicated to supporting jurisdictions in closing the gaps identified in the reports and continuing to strengthen the resilience of the insurance sector.”
Findings from the 2025 TJA included:
- IAIG determination and macroprudential supervision: Jurisdictions demonstrated robust processes for identifying IAIGs and collecting macroprudential data. However, some gaps remain in group-level analysis and the integration of macroprudential insights into supervisory actions.
- Liquidity risk management and disclosure: Foundational frameworks are in place across jurisdictions, but divergences in some aspects of supervisory practices persist. Challenges include a lack of enforceable requirements for stress testing, contingency funding plans, and liquidity risk reporting.
- Crisis management, recovery planning and resolution frameworks: Recovery planning frameworks are well-developed, but gaps remain in resolution powers and management information systems (MIS), limiting crisis preparedness. Efforts are underway to establish crisis management groups (CMGs) for all IAIGs.
The 2025 progress monitoring exercise evaluated progress made by the 10 jurisdictions assessed in the 2022 TJA. These jurisdictions include Canada; China; Hong Kong; France; Germany; Japan; the Netherlands; Switzerland; the United Kingdom and the United States.
Findings included:
- Resolution and recovery frameworks: Jurisdictions strengthened resolution powers, formalised recovery plan requirements, and advanced supervisory guidance, including stress testing and recovery planning for insurers. New tools and frameworks were introduced to improve resolution and recovery practices.
- Crisis management and coordination: Significant progress was made in establishing and operationalising CMGs for IAIGs, enhancing cross-border crisis coordination and integrating CMGs into supervisory colleges.
- Macroprudential supervision and risk management: Jurisdictions improved macroprudential supervision processes, data collection, systemic risk assessments and liquidity risk management, alongside initiatives to enhance disclosures.
While notable progress has been made, there are a few gaps in the areas of resolution powers, resolution planning, and liquidity risk disclosures. Jurisdictions are actively undertaking initiatives to address these gaps.
“The Holistic Framework implementation assessments represent a concerted effort by the IAIS and its members to enhance the global insurance sector’s resilience to systemic risk,” said IAIS Secretary General Jonathan Dixon.
“These assessments not only help strengthen financial stability worldwide through promoting comprehensive and consistent implementation of the IAIS’ standards on systemic risk but also provide an important feedback loop on how these standards may need to be further enhanced or where further supervisory guidance may be necessary.”
Added Mr Dixon, “The success of this exercise provides a strong foundation for future assessments of other IAIS standards, such as the Common Framework for the Supervision of IAIGs, including the Insurance Capital Standard.”
The 2025 TJA report can be accessed here, and the progress monitoring report of the 2022 TJA can be accessed here.