3rd December 2023
-Aggregate systemic risk scores of the global insurance sector declined slightly compared to last year’s analysis, remaining well below that of banks.
-In addition to an aggregate overview of insurers’ solvency, profitability and liquidity, the report shares in-depth analyses conducted on two key themes: (1)interest rate, liquidity and credit risks in a challenging macroeconomic environment; and (2)structural shifts in the life insurance sector, including greater allocation of capital to alternative assets and increased reliance on cross-border asset-intensive reinsurance.
-Insurers continue to have material exposures to climate change, through their significant investments in “climate-relevant sectors” and through the expected increase in claims related to natural catastrophe events, which may impact profitability and capital adequacy.
-Looking ahead, insurers’ solvency and profitability could be negatively impacted by lapses, unrealised losses and reduced insurance demand due to strains on households’ purchasing power in some markets. Geopolitical tensions continue to negatively influence the outlook.
IAIS Trends(179 articles)