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26 July 2019

EIOPA’s July 2019 Risk dashboard shows broadly stable risk trends for the European Union insurance sector


The results show that the risk exposures of the EU insurance sector remain overall stable, with macro and market risks now at a high level. This is due to a further decline in swap rates and lower returns on investments in 2018, which put a strain on those life insurers offering guaranteed rates.

The low interest rate environment remains a key risk for the insurance sector. Credit risks continue at medium level with broadly stable Credit Default Swap (CDS) spreads for government and corporate bonds.

Profitability and solvency risks increased due to lower return on investments for life insurers observed in year-end 2018 data. Solvency Capital Requirement (SCR) ratios are above 100% for most undertakings in the sample even when excluding the impact of the transitional measures.

Market perceptions were marked by a performance of insurers' stocks broadly in line with overall equity markets, while median CDS spreads have slightly increased.

No change was observed in insurers' external ratings and rating outlooks.

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Risk dashboard



© EIOPA


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