Risk Dashboards - Previous Publications

Previous Publications

Risk Dashboard – Third quarter 2017

 

Risk categoriesLevelTrend
1. Macro risksHighConstant 
2. Credit risksMediumConstant 
3. Market risksMediumConstant
4. Liquidity and funding risksMediumConstant
5. Profitability and solvencyMediumConstant
6. Interlinkages and imbalancesMediumConstant
​7. Insurance (underwriting) risks

Medium

Large Increase
Market perceptionsLevelTrend
8. Market perceptionsMedium Constant

 

Key observations:

 

The results of the third quarter 2017 show that the risk exposure of the insurance sector in the European Union remained overall stable. Despite positive macro and market trends, the risks linked to the low interest rates and to potential credit risk mispricing continued to be major concerns for the European insurance industry. Improvements in the solvency ratios were mainly driven by the increase in the eligible own funds. Some profitability and underwriting indicators deteriorated due to the impact of the recent natural catastrophes. Market perception remained stable with some improvements in the rating outlooks.

This Risk Dashboard based on Solvency II data summarises the main risks and vulnerabilities in the European Union insurance sector through a set of risk indicators of the third quarter of 2017. This data is based on financial stability and prudential reporting collected from 97 insurance groups and 2,963 solo insurance undertakings.

 

Note:

  • Reference date for the quarterly data is Q3-2017 (data extracted on 05/01/2018), while the cut-off date for most other indicators is beginning of January 2018.
  • Risk Levels are based on a 4-level scale from Low (green) to Very high (red). Risk trend reports the quarter on quarter variation of the risk based on a 5-level scale from Substantial Decrease to Large Increase.
  • EIOPA Risk Dashboard – January 2018

Risk Dashboard – Second quarter 2017

Risk categories Level Trend
1. Macro risks High Constant 
2. Credit risks Medium Constant 
3. Market risks Medium Constant
4. Liquidity and funding risks Medium Constant
5. Profitability and solvency Medium Constant
6. Interlinkages and imbalances Medium Constant
7. Insurance (underwriting) risks Low Constant
Market perceptions Level Trend
8. Market perceptions Medium
Decrease


Key observations: 

The results of the second quarter 2017 show that the risk exposure of the insurance sector in the European Union remains overall stable with some slight improvements in the solvency ratios of groups and life solo undertakings. Profitability of the sector has shown some positive signs both for life and non-life. Inflation rate forecast is decreasing inverting the positive trend observed till March 2017, whereas unemployment rates continue to decrease. Despite some positive developments, the continuing low-yield environment and the observation that market fundamentals might not properly reflect the underlying credit risk, are still important concerns for the European insurance industry. Recent natural catastrophe events have not yet been reflected in the data, therefore no impact on the industry is reflected at this stage. Market perception, driven by the outperformances of the insurance stocks and the reduction of the Credit Default Swap Spreads, improved. Ratings and rating outlooks remain stable. 

This Risk Dashboard based on Solvency II data summarises the main risks and vulnerabilities in the European Union insurance sector through a set of risk indicators of the second quarter of 2017. This data is based on financial stability and prudential reporting collected from 93 insurance groups and 3,076 solo insurance undertakings.

Note:

 

  • Reference date for company data is Q2-2017 (data extracted on 26/09/2017), while the cut-off date for most other indicators is end-September 2017
  • Risk Levels are based on a 4-level scale from Low (green) to Very high (red). Risk trend reports the quarter on quarter variation of the risk based on a 5-level scale from Substantial Decrease to Large Increase.
  • EIOPA Risk Dashboard – October 2017

Risk Dashboard - First quarter 2017

Risk categories Level Trend
1. Macro risks High Constant 
2. Credit risks Medium Constant 
3. Market risks Medium Constant 
4. Liquidity and funding risks Medium Decrease
5. Profitability and solvency Medium Increase
6. Interlinkages and imbalances Medium Constant
7. Insurance (underwriting) risks Low Constant
Market perceptions Level Trend
8. Market perceptions Medium Constant 

 


The results show that the risk exposure of the insurance sector in the European Union remained overall stable in the first quarter 2017 with Solvency II ratios remaining strong and stable for groups whereas a slight deterioration has been observed particularly for solo non-life insurance undertakings. Volatility has decreased and global inflation rates are fluctuating near the 2% medium-term inflation target. Despite these positive signs, the continuing low-yield environment and the observation that market fundamentals might not properly reflect the underlying credit risk are still important concerns for the European insurance industry. Nevertheless, market perception is relatively stable with some signs of improvement in the Credit Default Swap spreads.

This Risk Dashboard based on Solvency II data summarises the main risks and vulnerabilities in the European Union insurance sector through a set of risk indicators of the first quarter of 2017. This data is based on financial stability and prudential reporting collected from 93 insurance groups and 3,076 solo insurance undertakings.


Note:

 

  • Reference date for company data is Q1-2017, while the cut-off date for most other indicators is end-June 2017
  • Risk Levels are based on a 4-level scale from Low (green) to Very high (red). Risk trend reports the quarter on quarter variation of the risk based on a 5-level scale from Substantial Decrease to Large Increase. For a thorough description of the methodology and of the presentation refer to the Background Note

 

 

EIOPA Risk Dashboard - July 2017

EIOPA Risk Dashboard - Background Note - July 2017


Risk Dashboard - May 2017

Risk categories Level Trend
1. Macro risks High Constant 
2. Credit risks Medium Constant 
3. Market risks Medium Decrease
4. Liquidity and funding risks Medium Constant
5. Profitability and solvency Medium Substantial Decrease
6. Interlinkages and imbalances Medium Constant
7. Insurance (underwriting) risks Low Constant
Market perceptions Level Trend
8. Market perceptions Medium Increase


The results show the risk exposure of the insurance sector remained overall stable and some positive market developments were identified. Solvency II ratios are stronger due to higher market values of assets and the increase of the risk free curve used for discounting the technical provisions. Volatility has decreased and inflation rates have slowly started to converge to desired target levels. 

Despite these positive signs, the continuing low-yield environment and the observation that market fundamentals might not properly reflect the underlying credit risk, are still important concerns for the European Union insurance industry. This is also reflected in the slightly deteriorating market perception and the recent underperformance of insurance stock prices. 

This Risk Dashboard based on Solvency II data summarises the main risks and vulnerabilities in the European Union insurance sector through a set of risk indicators of the fourth quarter of 2016. This data is based on financial stability and prudential reporting collected from 93 insurance groups and 3,076 solo insurance undertakings.

Note:

  • Reference date for company data is Q4-2016, while the cut-off date for market-based data is end-March 2017. 
  • Risk Levels are based on a 4-level scale from Low (green) to Very high (red). Risk trend reports the quarter on quarter variation of the risk based on a 5-level scale from Substantial Decrease to Large Increase. For a thorough description of the methodology and of the presentation refer to theBackground Note


February 2017 Release

 

Risk categories Level Trend
1. Macro risks High Constant 
2. Credit risks Medium Constant 
3. Market risks High Constant 
4. Liquidity and funding risks Medium Decrease
5. Profitability and solvency Medium Constant
6. Interlinkages and imbalances Medium Constant
7. Insurance (underwriting) risks Low Constant
Market perceptions Level Trend
8. Market perceptions Medium Constant

Note:

  • Reference date for company data is Q3-2016, while the cut-off date for market-based data is end-December 2016.
  • Risk Levels are based on a 4-level scale from Low (green) to Very high (red). Risk trend reports the quarter on quarter variation of the risk based on a 5-level scale from Substantial Decrease to Large Increase. For a thorough description of the methodology and of the presentation refer to the Background Note

EIOPA Risk Dashboard - February 2017


​​​​​​​Date​Publication
​03.2016 ​EIOPA Risk Dashboard March 2016
​12.2015EIOPA Risk Dashboard December 2015 
​09.2015 EIOPA Risk Dashboard September 2015
​06.2015 ​EIOPA Risk Dashboard June 2015​​
​03.2015 EIOPA Risk Dashboard March 2015​
​12.2014

​​EIOPA Risk Dashboard December 2014

Eiopa Risk Dashboard December 2014 - Background Note

​09.2014EIOPA Risk Dashboard September 2014
06.2014 Eiopa Risk Dashboard June 2014
03.2014 Eiopa Risk Dashboard March 2014
Eiopa Risk Dashboard March 2014 - Background Note
12.2013 EIOPA Risk Dashboard December 2013 
09.2013 EIOPA Risk Dashboard September 2013
06.2013 EIOPA Risk Dashboard June 2013
EIOPA Risk Dashboard June 2013 – Background Note
03.2013 EIOPA Risk Dashboard March 2013
EIOPA Risk Dashboard March 2013 -Background Note
12.2012 EIOPA Risk Dashboard December 2012
10.2012 EIOPA Risk Dashboard September 2012