The European Insurance and Occupational Pensions Authority published its April 2026 risk dashboard for institutions for occupational retirement provision, highlighting elevated geopolitical tensions and uncertainty as continuing to shape the risk environment for European IORPs. Market risks were identified as a key concern, with higher inflation projections linked to high energy prices amid conflicts in the Middle East increasingly affecting the macroeconomic backdrop. Uncertainty over the trajectory and duration of the war in Iran, alongside other ongoing conflicts, continues to weigh on the outlook. By end-March, bond spreads had widened and volatility in equity and corporate markets had increased. The dashboard points to vulnerabilities from high asset valuations and growing doubts over whether artificial intelligence can meet investors’ expectations, adding to sensitivity to adverse geopolitical developments. Liquidity and funding risks remain contained despite more negative valuations of IORPs’ derivatives positions, while digitalisation and cyber risks also remain relevant. Despite these pressures, the financial position of defined benefit IORPs strengthened, supported by strong investment returns, higher equity prices and rising long-term interest rates. The dashboard is based on fourth quarter 2025 regulatory reporting from 625 IORPs in the European Economic Area and is supplemented with market data up to end-March 2026.
European Insurance and Occupational Pensions Authority 2026-04-30
European Insurance and Occupational Pensions Authority flags market risks as a key concern in April 2026 IORP risk dashboard
The European Insurance and Occupational Pensions Authority published its April 2026 risk dashboard for institutions for occupational retirement provision, highlighting elevated geopolitical tensions, higher inflation projections and market risks as key concerns. It notes wider bond spreads, increased equity and corporate market volatility, vulnerabilities from high asset valuations and doubts over artificial intelligence, while liquidity and funding risks remain contained and defined benefit IORPs’ financial positions have strengthened. The assessment is based on fourth quarter 2025 regulatory data from 625 IORPs in the European Economic Area, supplemented with market data to end-March 2026.