• Low yield environment, weak macroeconomic climate and contagion risk from exposure to sovereigns and financial institutions remain prominent risks for both insurance and pensions sectors;
• As a response to the low yield environment, insurance undertakings are focusing on unit-linked contracts and products with more flexible guarantee structures;
• Issuance of Insurance-Linked Securities by reinsurers has reached its highest level since 2007 and needs to be closely monitored by supervisors to ensure that potential risks are dealt with;
• EIOPA’s quantitative analysis shows that premium growth in life insurance would be hit negatively under any adverse macroeconomic scenario.

Read full EIOPA Press Release.

EIOPA Second Half-Year Financial Stability Report 2013