

The risk exposure of the insurance sector in the European Union is stable, according to EIOPA’s latest Risk Dashboard, with improvements in solvency ratios mainly driven by the increase in eligible own funds.
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 however.
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.
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.