European Insurance and Occupational Pensions Authority finds European insurance sector risks stable at medium level in April 2026 dashboard

The European Insurance and Occupational Pensions Authority has published its April 2026 Insurance Risk Dashboard, finding that risks in the European insurance sector remain stable at a medium level. The update identifies somewhat higher inflation expectations and persistent geopolitical tensions as the main macroeconomic pressures, with uncertainty around the conflict in Iran and its potential effect on energy prices adding to downside risks. Credit risk remains steady, supported by broadly unchanged fundamentals and high portfolio quality, although insurers have reallocated part of their portfolios toward riskier bond segments and spreads have widened. Market risk has become more elevated as volatility in bond and equity markets increases, while liquidity and funding conditions are broadly unchanged, supported by stable cash and liquid assets and supportive lapse developments. Solvency and profitability risks remain at a medium level, with modestly stronger capital positions and mixed profitability indicators, and insurance risks are also assessed at a medium level on the back of strong premium growth and stable underwriting performance, despite uncertainty around marine, aviation and trade-related claims. The dashboard is based on Solvency II data from the fourth quarter of 2025 and end-2024, covering 94 insurance groups and 2,092 solo insurance undertakings, complemented by market data with a cut-off date of end-March 2026.