Context
EIOPA has published its October 2026 Insurance Risk Dashboard. The main findings show that market and cyber risks remain high amid a geopolitically complex environment. This Insurance Risk Dashboard, based on Solvency II data, summarises the main risks and vulnerabilities in the European insurance sector. The data is based on financial stability and prudential reporting collected from 95 insurance groups and 2092 solo insurance undertakings.
Key points to note and next actions regarding Risks
- Macroeconomic: Medium risk, with a worsening outlook due to geopolitical uncertainty and pressure on sovereign debt from rising interest rates.
- Credit: Stable, supported by high-quality assets; financing costs and private credit quality remain areas to monitor.
- Market: Elevated amid bond market volatility, potential market corrections and geopolitical tensions.
- Solvency and profitability: Stable at medium risk, with broadly unchanged capital positions and mixed profitability.
- Insurance: Reduced to low risk, supported by strong premium growth and improved loss ratios.
- ESG: Largely stable, but supervisors expect deterioration over the next 12 months.
- Digitalisation and cyber: Elevated and worsening, driven by advanced AI, geopolitical spillovers and cyber underwriting exposure.