EIOPA's insurance risk dashboard shows overall stability amid persistent tensions

The European Insurance and Occupational Pensions Authority (EIOPA) published today its October 2025 Insurance Risk Dashboard. The main findings show that risks in the European insurance sector are stable at a medium level.

Macroeconomic risks remain steady at a medium level as growth and inflation forecasts as well as monetary policy expectations show little movement. Fiscal and credit indicators stay weak, while labour markets have also softened slightly.

Credit risks are unchanged, with a solid portfolio quality and limited market impact from recent fiscal and political developments.

Market risks stay elevated but stable. Volatility has eased somewhat, yet valuations remain stretched, warranting continued attention. Other annual indicators also contribute to maintaining the elevated overall risk profile.

Liquidity and funding conditions are steady, supported by stable cash positions and only minor changes in key indicators.

Profitability and solvency remain firm, with a slight improvement in insurers' capital positions and strong levels of high-quality own funds.

Insurance risks show a downward trend, as life premium growth moderates and underwriting results stabilise.

ESG risks remain at a medium level, although with an increasing trend. Insurers' investments in green bonds as a share of the overall green bond universe decreased slightly, while undertakings' median exposure to climate-relevant assets grew.

Cyber and digitalisation risks are gaining prominence, with an increased perceived likelihood of incidents and growing concerns around the vulnerabilities of IT systems.

View the Dashboard

Background

This Insurance Risk Dashboard, based on Solvency II data, summarises the main risks and vulnerabilities in the European insurance sector through a set of risk indicators from the second quarter of 2025 and end-2024. The data is based on financial stability and prudential reporting collected from 97 insurance groups and 2124 solo insurance undertakings. The Solvency II information is complemented with market data with cut-off date end-September 2025.