The European Insurance and Occupational Pensions Authority has published its April 2026 risk dashboard for institutions for occupational retirement provision, finding that elevated geopolitical tensions and uncertainty continue to shape the risk landscape for European IORPs, with market risks identified as a key concern. Higher inflation projections, driven by high energy prices amid conflicts in the Middle East, are increasingly influencing the macroeconomic environment, while uncertainty over the trajectory and duration of the war in Iran and other regional conflicts weighs on the outlook. Financial markets are being tested by that uncertainty. Bond spreads widened and volatility in equity and corporate markets spiked by end-March, while high valuations and growing doubts over whether artificial intelligence can meet investors’ expectations are adding to sensitivity to adverse geopolitical developments. Liquidity and funding risks remain contained despite more negative valuations in IORPs’ derivatives positions, and digitalisation and cyber risks remain relevant. At the same time, the financial position of defined benefit IORPs has strengthened, supported by strong investment returns, higher equity prices and rising long-term interest rates. The dashboard covers the European Economic Area IORP sector across defined contribution and defined benefit schemes. It is based on regulatory reporting for the fourth quarter of 2025 from 625 IORPs, complemented by market data with a cut-off at end-March 2026.

Original source View in tracker