On 7 February, EIOPA published its Risk Dashboard based on SII data for Q3 of 2023. The results show that EIOPA’s assessment is that insurers’ exposures to macro and market risks are currently the main concern for the insurance sector.
EIOPA note that:
- Macro risks remain a key concern due to a further decrease in global GDP and the high inflation (CPI) expectations. Central banks continue normalising their monetary policy and weighted average of 10 years swap rates increased.
- Market risk is also a key concern. Volatility in bond and equity markets continues to top last year’s average. Property prices remain at the same level. Insurers’ median exposure to property slightly increased in Q2 2022, and exposure to bonds and equities remained stable.
All other risk categories stay at medium levels. Credit risk, the CDS spreads remain stable. Profitability and solvency risks are unchanged. Insurance risks remain at a medium level with an increasing trend; the life insurance year-on-year premiums growth reached the negative territory, but non-life premiums remained positive with a notable growth. Market perceptions suggest that insurance stocks overperformed with a decrease in the CDS spreads and stable external ratings. ESG-related risks, the insurers have maintained their relative exposure to green bonds. Finally, Digitalisation and Cyber risks remain at the same level.
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Insurance Europe