The global insurance industry has maintained stable solvency, liquidity and profitability positions despite mounting economic pressures, geopolitical tensions and rising technology-related risks, according to the International Association of Insurance Supervisors (IAIS).
The finding was contained in the mid-year preview of the IAIS Global Insurance Market Report (GIMAR) 2026, which analysed preliminary data from the association’s 2026 Global Monitoring Exercise (GME) on emerging trends and risks affecting insurers worldwide.
According to the report, insurers entered 2026 with strong operational performance, effective asset-liability management and sufficient capital buffers, helping them withstand increasing uncertainty in global markets.
However, the IAIS warned that inflationary pressures, geopolitical instability and high sovereign debt levels are creating additional complexity for insurers’ balance sheets and business models, requiring stronger risk management strategies and greater adaptability.
The report noted that aggregate systemic risk scores among global insurance groups increased slightly at the end of 2025 compared with the previous year, driven largely by increased reliance on asset liquidation to generate cash and stronger connections between insurers, financial markets and the broader economy.
Gerry Cross, secretary general of the IAIS, said the latest assessment reflected the growing interconnectedness of risks confronting the insurance industry, ranging from macroeconomic pressures to cyber threats.
He noted that the changing risk environment requires a more dynamic and forward-looking approach to insurance supervision globally.
The report identified three major areas that insurance supervisors will focus on during the 2026 monitoring exercise: the impact of macroeconomic risks on life insurers’ balance sheets, the transmission of geopolitical risks to non-life insurers, and the effect of artificial intelligence and technology advancements on insurers’ cyber resilience.
For life insurers, the IAIS said rising interest rates, widening credit spreads and inflation pressures are creating challenges around solvency, liquidity and profitability due to their exposure to long-term liabilities.
The report added that insurers are responding through measures such as asset reallocation, scenario analysis and liquidity stress testing to manage potential disruptions.
On non-life insurance, the global supervisor said geopolitical conflicts are affecting insurers through disruptions in energy markets, higher claims costs and increased underwriting risks.
The organisation said insurers are strengthening capital and liquidity positions to manage these emerging challenges.
Meanwhile, the growing adoption of artificial intelligence is emerging as a major concern for the insurance sector, particularly around cyber resilience and operational risks.
The IAIS said supervisors are examining how frontier AI models could reshape cyber risks while also assessing insurers’ exposure through the underwriting of AI-related liabilities, digital assets and technology-driven risks.
Toshiyuki Miyoshi, chair of the IAIS Executive Committee, said the latest assessment showed the insurance industry’s ability to adapt despite continued global challenges.
He added that supervisors remain focused on ensuring the sector can withstand risks linked to geopolitical tensions, economic uncertainty and cyber threats.
For Nigeria’s insurance industry, the global outlook comes at a time when local operators are navigating their own market pressures, including recapitalisation requirements, inflationary challenges, currency volatility and efforts to deepen insurance penetration.
The IAIS findings also highlight emerging areas such as artificial intelligence and cyber risk management, which are becoming increasingly relevant for Nigerian insurers as digital transformation accelerates across the financial services sector.
