EIOPA published its updated Risk Dashboard based on the second quarter of 2020 Solvency II data.
In particular, the results show that:
- the risk exposures of the European Union insurance sector slightly reduced, compared to July risk assessment.
- with regard to macro risk, Gross Domestic Product (GDP) growth forecasts at the end of September show the strongest expected decline in the last quarter of 2020 and first recovery in the second quarter of 2021.
- the stabilization of the financial markets at the end of the third quarter 2020 partially eased the challenging situation for European insurers: market and credit risk indicators have stabilised at the end of September 2020.
- Insurance risks remain at medium level, driven by general concerns over decrease in premium growth, and in some Member States over reserve adequacy. More specifically, year-on-year premium growth for life reported a significant deterioration for the second consecutive quarter, indicating already a negative impact from the COVID-19 outbreak.
- While market perceptions exhibit a decreasing trend, they are still at medium level. Since June 2020, stocks of life and non-life insurance outperformed relative to the market.