The results show that insurers’ exposures to macro risks remain at a high level while all other risk categories, such as insurance as well as profitability and solvency risks, stay at medium levels
The European Insurance and Occupational Pensions Authority (EIOPA)
published today its Risk Dashboard based on Solvency II data from the
second quarter of 2021. . With regards to macro risks, inflation forecasts have
been revised upwards. Unemployment rates are still elevated but on a
decreasing trend. Financial markets stay broadly stable, amid fiscal and
monetary support.
Overall profitability indicators and solvency positions for insurance
groups continued improving in the second quarter of 2021. Insurance
risks continued at a medium level, with year-on-year premium growth for
non-life and life undertakings increasing for the second consecutive
quarter. Market perceptions remain at a medium level.
The environmental, social and goverance (ESG) related risks, included
for the first time in the current Risk Dashboard, are at a medium
level, with transaction and physical risks slightly improving. The
catastrophe loss ratio decreased compared to the previous quarter,
albeit not yet reflecting the potential negative impact of the European
floods events in summer 2021.
Dashboard
Background
This Risk Dashboard based on Solvency II data summarises the main risks
and vulnerabilities in the European Union insurance sector through a
set of risk indicators of the second quarter of 2021. The data is based
on financial stability and prudential reporting collected from 99
insurance groups and 2741 solo insurance undertakings.
© EIOPA
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