EIOPA’s risk dashboard shows stable outlook, but market risks persist
The European Insurance and Occupational Pensions Authority (EIOPA) has released its January 2025 Insurance Risk Dashboard, providing a snapshot of the key risks and vulnerabilities in the European insurance sector. Based on Solvency II data, the latest assessment indicates that risks remain stable and at medium levels overall, though market volatility and real estate price shifts continue to pose concerns.
The dashboard highlights macroeconomic risks as stable, with GDP growth and inflation forecasts holding steady. Market risks, however, remain high, despite some stabilisation in bond volatility. Liquidity and funding risks are rising due to tightening financial conditions, while solvency and profitability risks remain largely unchanged. ESG-related risks are expected to increase over the next 12 months, as shifting environmental policies and growing scepticism challenge sustainable finance efforts. Additionally, supervisors flagged a rise in digitalisation and cyber risks in late 2024, mainly due to the increased likelihood of previously identified risks materialising.
The ability to monitor trends, risks, and vulnerabilities across borders and sectors is critical for financial stability. This analysis relies on harmonised definitions and open, comparable data—enabled through XBRL reporting. Standardised Solvency II disclosures ensure that regulators, insurers, and investors can assess risks like these with clarity and consistency.
For full details, view the January 2025 Insurance Risk Dashboard on the EIOPA website here.
