On 2 August, EIOPA published its risk dashboard based on the first quarter of 2021 Solvency II data.
The results show that insurers’ exposures to macro risks remain at high level while all other risk categories remain at medium level.
With regards to macro risk, GDP growth and inflation forecasts registered new upward revisions. The 10 years swap rates have slightly increased across currencies in the second quarter of 2021. Financial markets remain broadly stable, amid fiscal and monetary support.
Solvency positions for the first quarter of 2021 for all types of undertakings showed an improvement. Life insurers’ profitability, measured by annual investments’ returns, registered a notable deterioration in 2020.
Insurance risks remain at medium level, in spite of deterioration of some indicators. The cumulative catastrophe loss ratio and year-on-year premium growth for non-life continued deteriorating. On the other hand, the loss ratio decreased to one of the lowest values and year-on-year premium growth for life reported a slight recovery after the deterioration in the previous quarters.
Market perceptions remain at medium level with an increasing trend. The life insurance sector underperformed while non-life outperformed the stock market in the second quarter 2021.
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Insurance Europe