EIOPA Reports Stable Insurance Risks as Cyber Threats Intensify

The July 2026 EIOPA Insurance Risk Dashboard shows that risks across the European insurance sector remain broadly stable at a medium level. However, geopolitical uncertainty and cyber threats continue to intensify.

Key findings include:

🔹 Macroeconomic risks remain at a medium level, but the outlook is worsening as geopolitical tensions add downside risks to already weak economic growth and higher inflation expectations.

🔹 Credit risks remain stable, supported by insurers’ holdings of high-quality assets and broadly unchanged fundamentals. Higher financing costs and vulnerabilities associated with private credit still require monitoring.

🔹 Market risks moderated through the end of June 2026. However, geopolitical tensions, commodity-price volatility, elevated asset valuations and the possibility of a broader market correction have weakened the outlook.

🔹 Liquidity and funding risks remain broadly unchanged, supported by stable cash positions and holdings of liquid assets.

🔹 Solvency and profitability risks remain at a medium level, reflecting broadly stable capital positions and mixed profitability indicators.

🔹 Insurance risks remain at a medium level. Strong premium growth provides support, although loss ratios have deteriorated in some areas and uncertainty remains around war- and trade-related insurance coverage.

🔹 ESG risks are largely stable, with a modest increase in green bond holdings and little change in insurers’ climate-related exposures.

🔹 Digitalisation and cyber risks have increased to a high level, driven by frontier AI developments, geopolitical tensions and elevated cyber-underwriting exposures.

The dashboard is based on Solvency II data from 96 insurance groups and 2,091 solo insurance undertakings, using indicators from the first quarter of 2026 and the end of 2025. Market data are included up to the end of June 2026.