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 – First quarter 2018

Risks Score Trend
1.     Macro risks Medium decrease
2.     Credit risks Medium constant
3.     Market risks Medium increase
4.     Liquidity and funding risks Medium constant
5.     Profitability and solvency Medium constant
6.     Interlinkages and imbalances Medium constant
7.     Insurance (underwriting) risks Low large decrease
Market perceptions Score Trend
8.     Market perceptions Medium constant

 

Key observations:

The results of the first quarter 2018 show that the risk exposure of the insurance sector in the European Union remains stable overall with a decline in macro and insurance risks and an increasing trend in market risks. Persisting low yields and recent adverse developments such as increased protectionism should not be neglected, despite the improvement in recent economic data and the ongoing normalisation of monetary policy. Higher volatility in bond markets since March led to an increase in market risks, but these continue at a medium level. Credit risks also remain at a medium level, although spreads increased across all bond segments. Profitability and insurance risks benefited from the fading out of the impact of last year's natural catastrophes on (re)insurers' technical results. Median solvency ratios remain at satisfactory levels, though the reliance of some life insurers on transitional measures is high. Market perceptions were marked by an overall positive change in insurance groups' external rating outlooks, which was counterbalanced by an underperformance of insurance stocks relative to the overall market.

Note:

  • Reference date for company data is Q1-2018  for quarterly indicators and 2017-YE for annual indicators. The cut-off date for most market indicators is mid-June 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 – July 2018

 

Previous Risk Dashboard Publications

Previous Risk Dashboard publications are available here