The European Insurance and Occupational Pensions Authority (EIOPA) has published an updated version of its risk dashboard. In the main, despite some improvement in the macroeconomic environment, the dashboard observes that the EU economic recovery remains vulnerable.

Points of interest within the dashboard include the following:

  • the impact of the weak macro-economic situation on the insurance sector remains a major concern;
  • market risk remains high as the period of historically low short and long-term interest rates continues;
  • credit risk has decreased as credit spreads have been declining;
  • profitability challenges remain;
  • average Solvency I ratios remain well above the 100% regulatory minimum requirement;
  • contagion risks from banks and sovereigns remain, but pose no immediate threat; and
  • liquidity and funding risks are not a major concern, but continue to be monitored.

View EIOPA risk dashboard – December 2013, 20 December 2013