The European Insurance and Occupational Pensions Authority’s July 2026 Insurance Risk Dashboard assesses risks in the European insurance sector as stable at a medium level overall. Digitalisation and cyber risks increased to a high level, driven by frontier artificial intelligence developments, geopolitical tensions and elevated cyber underwriting exposures. The macroeconomic outlook worsened as geopolitical tensions added downside risks to weakened growth and higher inflation expectations. Market risks moderated through end-June, although commodity volatility, elevated valuations and the potential for a broader correction remain concerns. Credit, liquidity, solvency and profitability risks were broadly stable, while strong premium growth supported a medium insurance risk assessment despite weaker loss ratios and uncertainty over war- and trade-related coverage. The assessment draws on Solvency II reporting from 96 insurance groups and 2,091 solo insurance undertakings, supplemented by market data through end-June 2026.
European Insurance and Occupational Pensions Authority2026-07-30
European Insurance and Occupational Pensions Authority finds insurance sector risks stable at medium level, digitalisation and cyber risks rise to high
The European Insurance and Occupational Pensions Authority assessed European insurance sector risks as stable at a medium level overall. Digitalisation and cyber risks rose to high, while geopolitical tensions weakened the outlook for macroeconomic and market risks.