The European Insurance and Occupational Pensions Authority (EIOPA) published its October 2026 Insurance Risk Dashboard, showing that market and cyber risks remain elevated amid geopolitical uncertainty. Insurance risks declined to a low level, supported by premium growth, while the outlook for macroeconomic and digitalisation and cyber risks worsened. Higher bond market volatility toward the end of September 2026 kept market risks elevated. A broader market correction and a potential repricing of risk premia following renewed geopolitical tensions remain concerns. Macroeconomic risks stayed at a medium level, but persistent instability and uncertainty weakened the outlook, with rising interest rates potentially adding pressure to sovereign debt sustainability. Digitalisation and cyber risks reflect concerns about frontier artificial intelligence models, digital spillovers from geopolitical conflicts and insurers’ exposure through cyber underwriting. The decline in insurance risks reflected strong premium growth across life and non-life business and an improvement in the upper tail of the loss ratio distribution. Solvency and profitability risks remained at a stable medium level, supported by broadly unchanged capital positions despite mixed profitability indicators. Credit risks were stable, with high quality asset portfolios and broadly unchanged fundamentals, although debt financing costs and private credit quality require monitoring. Environmental, social and governance risks were largely unchanged, but supervisors expect their outlook to deteriorate over the next 12 months.

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