EIOPA published its Risk Dashboard based on Solvency II data from Q3 of 2021.
According to EIOPA Risk Dashboard shows unchanged risk levels for European insurers. In summary:
· Insurers’ exposures to macro risks remain at a high level while all other risk categories (eg insurance, profitability and solvency risks) stay at medium levels.
· With regards to macro risks, inflation forecasts have been revised upwards.
· Financial markets stay broadly stable.
· Monetary policies remain accommodative although asset purchases continue at a slower pace and are expected to decelerate further.
· After six quarters of increasing trend, solvency position for groups decreased, but still remained above year end 2020 level.
· SCR ratio for solo life undertakings slightly improved while profitability indicators reported a slight deterioration, with a rise in the net combined ratio for non-life business.
· ESG related risks are at a medium level. The catastrophe loss ratio decreased slightly compared to the previous quarter, albeit it may not yet reflect the potential negative impact of the European floods events in summer 2021.
· Digitalisation and cyber risks are at medium level, and the materiality of these risks for insurers as assessed by supervisors remains contained.
For more information, please see here.
Insurance Europe