Global insurance market report [gimar]

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Figure 4.6a:
Asset allocation (USD billion, year-end 2014–2018)
Source: 2019 IAIS survey
Figure 4.6b:
Liability allocation (USD billion, year-end 2014–2018)
Source: 2019 IAIS survey

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Figures 4.6c and 4.6d show selected assets, key 
liabilities and paid-up capital per counterparty 
exposure. Both assets and liabilities show most 
of their exposures to the insurance market. 
While assets show a 16% exposure towards 
sovereigns, liabilities exposure is negligible.
Figure 4.6c:
Counterparty exposure – selected assets (% of reported assets, year-end 2018)
Source: 2019 IAIS survey
Figure 4.6d:
Counterparty exposure – key liabilities and paid-up capital (% of reported liabilities, year-end 2018)
Source: 2019 IAIS survey
Insurers, 41%
Banks, 8%
Investment Institutions, 6%
Sovereigns, 16%
Other, 29%
Other, 12%
Investment Institutions, 5%
Sovereigns, 0%
Banks, 2%
Insurers, 81%

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4.7 LIQUIDITY
In 2019, the IAIS asked survey respondents to 
report on assets within their one-year liquidity
pool for the first time. Short-term investments 
accounted for 26%, cash for 12%, and sovereign,
supranational agencies and municipal bonds 
(investment grade) for 33%. Corporate debt
falls under “Other”, which accounted for 29%. 
Reverse repos accounted for only 0.01%.
4.8 SUMMARY OF MAIN FINDINGS
The reinsurance market is still recovering and 
further consolidating its capacity following the 
series of severe natural catastrophes that took 
place in 2017. However, capital has proven an 
effective loss buffer when held at sufficient levels. 
The combined ratio has decreased compared to 
2017, albeit still being at a high level. The Global 
Reinsurance Market Survey demonstrates the 
extent to which the reinsurance industry relies 
on retrocession as a tool to reduce and diversify 
risk. If the trend of declining retrocession persists, 
the industry may experience a shift towards other 
risk-mitigating mechanisms.
Equity and debt securities still remain the largest 
asset classes for investment in the reinsurance 
industry, cumulatively accounting for 77.5%. 
Short-term portfolios tend to be invested in highly 
liquid securities, while reinsurers’ exposures are 
mainly concentrated in the insurance market.
Figure 4.7a:
One-year liquidity profile (year-end 2018)
Source: 2019 IAIS survey
Short-term investments, 26%
Cash, 12%
Sovereign bonds AAA rated, 10%
Reverse repos, 0%
US sovereign bonds, 4%
Other government bonds investment rated, 13%
Supranational agencies and 
municipal bonds, 6%
Other, 29%

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