The European Insurance and Occupational Pensions Authority (EIOPA) published its October 2026 risk dashboard for institutions for occupational retirement provision (IORPs), highlighting elevated market risks and a worsening outlook for digitalisation and cyber risks. By contrast, stronger financial positions among defined benefit schemes in the second quarter of 2026 reduced reserve and funding risks. Persistent geopolitical tensions remain the main source of macroeconomic risk, weighing on global growth prospects, fuelling inflation and pressuring sovereign debt sustainability. Sovereign and corporate bond spreads widened by the end of September, increasing scrutiny of debt financing costs and private credit quality. Bond market volatility has also increased, while persistently high valuations leave markets vulnerable to a broader correction and a repricing of risk premia amid renewed geopolitical tensions. Supervisors continue to assess the materiality of digitalisation and cyber risks for IORPs as elevated. The worsening outlook reflects growing cyber threats associated with frontier artificial intelligence models and the potential use of cyberattacks in international conflicts.
EIOPA flags elevated market risk and worsening cyber outlook for occupational pension funds
The European Insurance and Occupational Pensions Authority’s October 2026 risk dashboard identifies elevated market risks for European occupational pension funds, with wider bond spreads, increased bond volatility and high valuations creating vulnerabilities. The outlook for digitalisation and cyber risks is worsening amid threats associated with frontier artificial intelligence models and international conflicts. Stronger financial positions among defined benefit schemes in the second quarter of 2026 lowered reserve and funding risks.