Risk Dashboards

The Risk Dashboard presents EIOPA's quarterly risk assessment of the European Union insurance industry. With the implementation of the Solvency II regime in January 2016 substantial improvements as regards the risks' quantification and the reporting standards were introduced. The enhanced data of all (re)insurance undertakings subject to the Solvency II regime is the basis of the newly developed and improved analytical Risk Dashboard.

Risk Dashboard – Fourth 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 Medium
Constant
Market perceptions Level Trend
8. Market perceptions Medium
Constant


Key observations:

The results of the fourth quarter of 2017 show that the risk exposure of the insurance sector in the European Union remained stable. Despite positive macroeconomic developments, low interest rates are still a major source of risk for European insurers. Credit and market risks remained at a medium level. Spreads further decreased and concerns about potential risk mispricing remained. Volatility of equity prices increased and valuations are now slightly lower. Median profitability levels were broadly the same as in the fourth quarter of 2016 and solvency positions continued to be strong for both groups and solo companies. The impact of the natural catastrophes from the third quarter kept insurance risks at a medium level. Market perceptions were mixed, with insurers' stock prices outperforming the market, but at the same time there was a deterioration of the external rating outlook for some insurance groups.

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 2017. This data is based on financial stability and prudential reporting collected from 95 insurance groups and 2,930 solo insurance undertakings.

Note:

  • Reference date is Q4-2017 for quarterly indicators and 2016 YE for annual indicators. The cut-off date for most indicators based on market data is end-March 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 – April 2018

Previous Risk Dashboard Publications

Previous Risk Dashboard publications are available here