The Financial Stability Board (FSB) has reaffirmed its decision to rely on assessments from the International Association of Insurance Supervisors’ (IAIS) Holistic Framework for Systemic Risk in the Insurance Sector, rather than conducting an annual identification of global systemically important insurers (G-SIIs). This move follows a review of the FSB’s experience using IAIS assessments since 2022.
The IAIS will continue to provide the FSB with an annual report summarizing the outcomes of its Global Monitoring Exercise. This report assesses systemic risk in the global insurance sector by examining sector-wide trends, potential concentrations of systemic risk at individual insurers, and supervisory responses to identified risks. The IAIS will maintain its data collection efforts from both individual insurers and supervisors to support these evaluations. Any changes made to the analyses or methodologies used in these updates will be communicated to the FSB.
According to the FSB, "Using the annual update provided by the IAIS, the FSB may, in consultation with the IAIS and national authorities, publicly express its views on whether any individual insurer is systemically important in the global context and the appropriate application of the Holistic Framework supervisory policy measures that the FSB considers necessary to address such systemic importance. The FSB may also ask the IAIS to undertake further analysis for this purpose."
Additionally, the FSB stated it will continue publishing a list of insurers subject to resolution planning and resolvability assessments based on member authorities’ evaluations and self-reporting. These lists are available in its Annual Resolution Report and on its website. The organization may also comment publicly on whether reported insurers could be considered systemically significant or critical if they were to fail.
The FSB noted, "The FSB has published for consultation guidance to help authorities determine which insurers are subject to recovery and resolution planning requirements in the KAs. The guidance is expected to be finalised in 2026." The IAIS will remain involved in monitoring resolvability and contributing to public reporting efforts.