News release 13 January 2023 – 1/2023

EIOPA-published statement on inflation highlights need to understand impact of inflation on companies’ business

On 22 December 2022, the European Insurance and Occupational Pensions Authority (EIOPA) published a supervisory statement on inflation. The statement addresses the impact of inflation on the solvency of insurance companies.

The statement highlights consistent measures undertakings should use to analyse the impacts of high inflation. The statement focuses on how inflation affects technical provisions, investments and solvency capital requirements.

EIOPA reminds undertakings that calculation assumptions based solely on historical data may lead to an underestimation of technical provisions if historical data is only based on data from the period of low inflation. Undertakings are therefore expected to reassess whether the inflation assumptions in their technical provisions are still realistic in the current market situation, taking into account the nature, scale and complexity of the risks. In addition, inflation may also impact solvency capital requirements and the value of some assets.

Undertakings should also consider the direct or indirect effects of inflation on risk management systems, including their own risk and solvency assessments (ORSA).

Financial Supervisory Authority reminds undertakings of the importance of taking inflation into account in business

EIOPA’s statement complements the Financial Supervisory Authority’s measures aimed at ensuring that inflation is adequately taken into account in insurance companies’ business.

For further information, please contact:

Vesa Ronkainen, Team Leader, tel. +358 9 183 5704


EIOPA: Supervisory statement on inflation