
Risk dashboards novelties: ESG ratings of (some) insurers at a medium level
Since years, EIOPA’s quarterly risk dashboard evaluates the different risks of the insurance sector: credit risk, market risk, underwriting risk,…These dashboards, EIOPA writes, are based on financial stability and prudential reporting data (i.e. Solvency II quarterly (QRS) and annual reporting data (ARS)). According to the most recent dashboard, these are collected from 95 insurance groups and 2190 solo insurance undertakings. Recently, EIOPA added two new risk categories to its dashboard: ESG related risks (October 2021) and Digitalisation and cyber risks (January 2022). Given that the EU’s framework to evaluate ESG risks itself is under construction, and that reporting and disclosure obligations of ESG risks are not yet 100% in place, nor are they part of the SII reporting obligations, did EIOPA find the hidden data gem in its data vaults? What interested me was the methodology, source, definition and sample size used by EIOPA especially regarding the ESG related risks? Curious about this new category in the risk dashboard, I searched for more insights.