The latest findings of the biannual survey by the Insurance and Pension Funds Supervisory Authority (ASF) reveal that macroeconomic risk remains at a medium-high level.
There has been a decrease in uncertainty related to trade tariffs between the European Union (EU) and the US, “even though the 15% agreed level is historically high, and its effects are yet to be evaluated, along with risks from geopolitical tensions and military conflicts in Eastern Europe and the Middle East.”
Credit risks also remain a primary concern, with the supervisor highlighting “vulnerabilities linked to the increasing need for defense investment by European countries, potentially creating additional pressures on the most indebted jurisdictions.”
Conversely, there has recently been a decrease in the risk premiums for sovereign and private issuers, following the peak recorded in April.
Market risks continue to decline with reduced stock market volatility, despite some concerns over a possible correction.
Regarding liquidity and profitability and solvency risks, a “downward slope trend” is identified, with companies’ risk perception diminishing.
In the segments, ASF also notes that in the Non-Life segment, there is “uncertainty about the potential impacts of trade agreements and protectionist policies on claims costs and, consequently, on the profitability of the segment.”
