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(TNSrpt) -- The International Association of Insurance Supervisors issued the following news release on Dec. 15, 2022:
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* The 2022 Global Insurance Market Report (GIMAR) presents outcomes of the Global Monitoring Exercise (GME), the IAIS' framework for monitoring risks and trends in the global insurance sector and assessing the possible build-up of systemic risk.
* Systemic risk in the insurance sector on aggregate remains moderate. However, there is an upward trend in insurers' total systemic risk scores, in particular driven by increased exposures to illiquid, difficult-to-value assets, over-the-counter derivatives, short-term funding and intra-financial assets.
* Insurers' solvency and profitability positions improved in 2021, supported by strong performance of financial markets. Since 2022, geopolitical conflicts, inflation, tightening monetary policy and the deteriorating economic outlook have led to an increase in market, credit and liquidity risks.
* Key macroprudential themes identified this year for in-depth analysis were (1) lower macroeconomic outlook, high inflation and rising interest rates; (2) structural shifts in the life insurance sector, including the involvement of private equity; and (3) climate-related risks.
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The International Association of Insurance Supervisors (IAIS) today published its 2022 Global Insurance Market Report (GIMAR), outlining the key outcomes of its 2022 Global Monitoring Exercise (GME). The...