Europe posted his Financial Stability Reportto match December 2022a document that sheds light on key developments and risks in the European insurance and pensions sector.
Furthermore, the report presents 4 thematic approaches: the impact of rising inflation and interest rates on the financial position of insurers, the use of derivatives by insurers and related liquidity needs, the growing Importance of life portfolio transfers and the underwriting exposure of Non-Life insurers al climate change risk.
Eiopa underlines the relevance of this report, accessible from its website, as European economies have faced a number of exceptional disruptions over the past 3 years, such as the global pandemic and the effects of the war in Ukraine, which have exacerbated inflationary pressures and have reduced the growth prospects of the Old Continent.
In general, Eiopa reiterates a message it has already sent on other occasions: despite the difficult situation, the insurance companies and pension funds held up well the attacks It highlights that companies have tried to adapt to the changing landscape and have reduced their vulnerability, optimizing risk management processes through the portfolio transfer and product design.
Similarly, in this report, Eiopa insists it credit inflation risks persistthe possible widening of corporate and sovereign spreadsyes, the deteriorating macroeconomic outlook and the liquidity management in a period of rapidly rising interest rates, vigilance is therefore needed.
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