The Financial Stability Board (FSB) today issued the following public communication, which replaces the public communication issued on the same topic in 2022.

  1. The FSB, in consultation with the International Association of Insurance Supervisors (IAIS), reviewed its experience utilising IAIS assessments from the IAIS Holistic Framework for Systemic Risk in the Insurance Sector (Holistic Framework). Based on this review, the FSB reaffirms its 2022 decision to discontinue the annual identification of global systemically important insurers (G-SIIs) and to instead use IAIS Holistic Framework assessments.1 The annual update provided by the IAIS, described below, will also continue to inform the FSB’s ongoing work to evaluate vulnerabilities in the financial system.
  2. The IAIS provides the FSB with an annual report of the outcomes of the Global Monitoring Exercise, which is one pillar of the Holistic Framework. The annual update includes the IAIS assessment of systemic risk in the global insurance sector arising from sector-wide trends with regard to specific activities and exposures, the possible concentration of systemic risks at an individual insurer level, and the supervisory response to any identified risks. To this end, the IAIS will continue its data collection from individual insurers, complemented by data collection from supervisors, to support its assessments. The IAIS will continue to inform the FSB of changes made to the analyses used for the IAIS’s annual update to the FSB, including to the Global Monitoring Exercise and its methodology.
  3. 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.
  4. The FSB will continue to publish in its Annual Resolution Report and on the FSB’s website a list of insurers that–according to member authorities’ assessment and self-reporting–are subject to resolution planning and resolvability assessments consistent with the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions (KAs). The FSB may publicly express its views on the appropriateness and sufficiency of the set of reported insurers, based on whether an insurer could be systemically significant or critical if it fails. 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 continue to contribute to the FSB’s resolvability monitoring process and the FSB’s annual public reporting.
  1. In 2022, the FSB called on a review of this decision to be undertaken in 2025, when it first announced it would discontinue the G-SII process. [←]