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European Insurance and Occupational Pensions Authority

Insurance Risk Dashboard

Insurance Risk Dashboard January 2025 (Q3-2024 Solvency II Data)

January 2025 Insurance Risk Dashboard.PNG

Key observations:

The January 2025 Insurance Risk Dashboard shows that risks in the European insurance sector are stable and overall at medium levels, with pockets of vulnerabilities stemming from market volatility and shifts in real estate prices.

Macroeconomic risks remain stable at a medium level, with GDP growth and inflation forecasts holding steady. Geopolitical tensions are reshaping global dynamics, heightening concerns about declining international cooperation and escalating risks and uncertainties in the years to come.

Market risks remain at a high level. While bond volatility stabilised, it remains above historical standards.

Liquidity and funding risks are at a medium level but with an upward trend due to a gradual increase of risks across various indicators over the last year and the worsening of funding conditions in Q4 2024. 

Solvency and profitability risks are unchanged at a medium level. Solvency ratios for insurance groups and solo undertakings in the non-life segment showed a slight improvement in Q3 2024, while remaining largely unchanged for life undertakings.

Credit risk, insurance risks, market perceptions as well as interlinkages and imbalances risks are all assessed at medium levels.

With regard to ESG related risks,  the outlook for the next 12 months is pointing to an increase in risks as growing skepticism and evolving dynamics in environmental agreements make it more challenging to ensure consistent progress towards long-term sustainability goals. 

Supervisors have also noted a slight increase in trend regarding digitalisation and cyber risks in Q4 2024, driven by the higher perceived probability of these risk materialising. 

Go to the January 2025 Insurance Risk Dashboard

Note:

  • The reference date for company data is Q3-2024 for quarterly indicators and 2023-YE for annual indicators. The cut-off date for most market indicators is the end of December 2024.
  • The Level (color) corresponds to the level of risk as of the reference date, the Trend is displayed for the 3 months preceding the reference date and the Outlook is displayed for the 12 months after the reference date. The latter is based on the responses received from 23 national competent authorities (NCAs) and ranked according to the expected change in the materiality of each risk (substantial decrease, decrease, unchanged, increase and substantial increase).
     

Previous Dashboards

EIOPA's previous Insurance Risk Dashboards are available here.