European insurance, pension sectors face widespread risks: Report
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The weak macroeconomic climate, a prolonged low-interest-rate environment and sovereign credit risk are the key risks for the insurance, reinsurance and occupational pensions industries in Europe, the European Insurance and Occupational Pensions Authority said Tuesday in a report.
The insurance sector would be particularly vulnerable to a “severe double-hit scenario” of widespread asset price corrections combined with a decline in risk-free interest rates, said Frankfurt, Germany-based EIOPA, which supervises the insurance and pensions sectors in Europe.
While the insurance sector remains profitable overall, there is pressure on companies' results, EIOPA noted.
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