EIOPA – Published the Insurance Risk Dashboard

The European Insurance and Occupational Pensions Authority (EIOPA) has released the Insurance Risk Dashboard for November 2023 on its website.

The Risk Dashboard, based on Solvency II data, summarizes the key risks and vulnerabilities of the insurance sector in the European Union through a set of risk indicators.

The data is based on financial stability and prudential reports collected from insurance groups and individual insurance companies.

The Dashboard highlights the macroeconomic market and the digitalization risks as the most significant risks. In the first case, due to the anticipated global PIL decrease over the next four quarters, leading to high volatility in bond and stock markets; in the second case, due to the increased frequency of cyber incidents, which has notably increased in the second quarter of 2023 in comparison to the same quarter of the previous year.

Meanwhile, liquidity and financing risks, as well as interconnection and insurance underwriting risks, remain stable: in the second quarter of the current year, there has been a positive median growth in life insurance premiums on an annual basis.

ESG related risks remain stable at medium level, the median exposure towards climate relevant assets hover around to 3 % of total assets.