The global insurance sector has remained financially stable at the end of 2025 despite increasing geopolitical tensions, inflationary pressures and elevated sovereign debt levels, according to the International Association of Insurance Supervisors' (IAIS) mid-year Global Insurance Market Report 2026.
Preliminary findings from the IAIS' 2026 Global Monitoring Exercise indicated that insurers maintained stable solvency, liquidity and profitability, supported by strong operational performance, effective asset-liability management and robust capital buffers. However, aggregate systemic risk scores for global insurance groups rose slightly compared with a year earlier.
The IAIS also warned that insurers are operating in an increasingly complex environment in 2026, with geopolitical tensions, macroeconomic uncertainty and cyber threats placing greater pressure on balance sheets and business models. Because of this, insurance supervisors have identified three priority areas for closer monitoring this year: the impact of macroeconomic risks on life insurers, the transmission of geopolitical risks to non-life insurers, and the effect of advances in artificial intelligence and technology on insurers' cyber resilience.
According to the report, higher interest rates, widening credit spreads and persistent inflation are posing greater challenges for life insurers because of their long-term liabilities. Meanwhile, geopolitical conflicts are disrupting energy markets, increasing claims costs and raising underwriting risks for non-life insurers. The IAIS said insurers are responding by strengthening risk management practices through asset reallocation, liquidity stress testing, scenario analysis and enhanced capital and liquidity buffers.
"The mid-year GIMAR highlights the insurance sector's strength and adaptability in the face of continuing global challenges," said IAIS Executive Committee Chair Toshiyuki Miyoshi. IAIS Secretary General Gerry Cross added that the growing interconnectedness of macroeconomic, geopolitical and cyber risks requires a more dynamic and forward-looking approach to insurance supervision.