EIOPA Publishes Risk Dashboard for the Third Quarter of 2018

The dashboard highlights that credit, market, and liquidity and funding risks continue at a medium level, with Credit Default Swap spreads for corporate bonds as well as equity market volatility increasing since September. Profitability and solvency risks also remain stable at a medium level. The ratio of assets over liabilities and share of tier 1 own funds have both increased slightly. Median Solvency Capital Requirement (SCR) ratios for groups and non-life companies have improved while the SCR ratios for life companies have decreased. However, SCR ratios for all types of undertakings remain above 100%. Although insurance risks increased following the impact on (re)insurers' loss ratios of the natural catastrophes observed in the third quarter of 2018, they remain at a low level. Underpricing and underreserving driven by the competition could be a concern for some lines of business. Market perceptions are stable at the medium level, with insurance stocks outperforming the market despite a general deterioration in equity market performance. 

Related Links

• Press Release
• Risk Dashboard (PDF)

Keywords: Europe, EU, Insurance, Risk Dashboard, Financial Stability, Solvency II, Credit Risk, Market Risk, Liquidity Risk, EIOPA