Risk Dashboard for third quarter of 2017 continues to show relative stable risk exposure of the EU insurance sector

Today, the European Insurance and Occupational Pensions Authority published its Risk dashboard based on the third-quarter 2017 data.

The results show that the risk exposure of the insurance sector in the European Union remained overall stable. Despite positive macro and market trends, the risks linked to the low interest rates and to potential credit risk mispricing continued to be major concerns for the European insurance industry. Improvements in the solvency ratios were mainly driven by the increase in the eligible own funds. Some profitability and underwriting indicators deteriorated due to the impact of the recent natural catastrophes. Market perception remained stable with some improvements in the rating outlooks.

Background

The Risk Dashboard is a quarterly publication summarising the main risks and vulnerabilities in the European Union insurance sector by using a set of indicators grouped into seven risk categories: macro risks, credit risks, market risks, liquidity and funding risks, profitability and solvency, interlinkages and imbalances and insurance (underwriting risks). An additional category "Market perceptions" gives the insight in how the insurance sector is perceived by financial markets.

The data covered by the Risk Dashboard is based on financial stability and prudential reporting of a sample of 97 insurance groups and 2,963 solo insurance undertakings.