Kathmandu. The International Association of Insurance Supervisors (IAIS) has released its annual Global Insurance Market Report 2025, which states that the global insurance sector remains resilient with strong capital, adequate liquidity and good profitability. <\/p>\n
The report points out that three key issues in the insurance sector are private equity investment, geoeconomic fragmentation and the need for strict monitoring by regulators on artificial intelligence (AI). <\/p>\n
The main five topics of the report <\/strong><\/span><\/p>\n }<\/p>\n Attraction and Risk in Private Equity Funds: Life insurance companies have increased their investment in private capital in recent years. Although this investment will provide long-term returns, there are some serious risks. <\/p>\n It is difficult to determine its price as it is not traded in the public market. In times of crisis, such investments are difficult to sell, and their structure is very complex. <\/p>\n Geoeconomic fragmentation: <\/span> Financial market volatility has increased due to rising trade tensions, sanctions, and divergent monetary policies between countries. This has made it challenging for insurance groups operating internationally to manage their assets and liabilities. <\/p>\n Use of Artificial Intelligence: <\/span> has increased its use in underwriting, pricing, and claim payment in the insurance sector. The association has warned that even if the work is done quickly, it can lead to problems such as bias in data and information, cyber risk and lack of transparency. <\/p>\n Reduction in Systemic Risk: <\/span> There has been a slight decrease in systemic risk (the risk of the entire system sinking when a company sinks) in the overall global insurance sector. The risk of the insurance sector is very low compared to the banking sector. <\/p>\n {{TAG_OPEN_span_22}Climate Change and Cyber Risk: <\/span> The increasing number of natural disasters and the incidence of cyber attacks have put pressure on the insurance sector to be more vigilant. Insurance companies are now using climate scenario analysis to assess future climate-related losses. <\/p>\n This report is also instructive for emerging markets like Nepal. It provides early warning to Nepali regulators and companies about the precautions to be taken, especially when using technology and diversifying investments. <\/p>\n Jonathan Dixon, general secretary of the association, said: “Our aim is to make the insurance sector strong enough to withstand any major financial crisis. We will intensify monitoring of private credit and climate risk in the coming years. \u2019<\/p>\n In its action plan for 2026-2027, the association plans to increase monitoring of alternative assets, revise guidelines for responsible public use, and do more to reduce climate risks.<\/p>\n","protected":false},"excerpt":{"rendered":" Kathmandu. The International Association of Insurance Supervisors (IAIS) has released its annual Global Insurance Market Report 2025, which states that the global insurance sector remains resilient with strong capital, adequate liquidity and good profitability. The report points out that three key issues in the insurance sector are private equity investment, geoeconomic fragmentation and the need […]<\/p>\n","protected":false},"author":5,"featured_media":283605,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45044,45159],"tags":[],"class_list":["post-283714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/283714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=283714"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/283714\/revisions"}],"predecessor-version":[{"id":283715,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/283714\/revisions\/283715"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/283605"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=283714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=283714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=283714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}