This report flags vulnerabilities in private credit exposures (€514 billion for insurers, €128 billion for IORPs), including illiquidity, credit risks, valuation uncertainties, and concentrations.
It notes risks from a weakening dollar impacting €1.8 trillion in dollar‑denominated assets, affecting currency exposure and profitability despite hedging.
Global interconnectedness is described as increasing market and currency risks via non‑EEA investments and offshore reinsurance amid geoeconomic tensions.
Additional concerns include cyber risks as systemic threats and AI potentially amplifying vulnerabilities.
EIOPA stresses monitoring, prudent risk management, and enhanced data collection.