Solvency II report

Insurance consulting Insurance market insight Part VII and Section 13 transfers Risk management Solvency II

LCP’s ninth annual analysis of Solvency II reports from 100 of the largest non-life insurers in the UK and Ireland.

From insight to action: managing risk in an era of transformation

Our latest Solvency II report reveals a slight dip in overall market solvency coverage from 198% to 194%. This was driven by Irish insurers, whose average ratio fell from 196% to 178%, citing higher dividends, market conditions and changes in risk profile as key drivers to the reduction.

After three years of double-digit gross written premium growth, early signs of market softening are starting to come through.

Key risks discussed in the report include:

Geopolitical risk: Continues to be a key theme in SFCRs. While many insurers focused on the conflicts in Ukraine and the Middle East, others acknowledged broader instability including rising nationalism and protectionism.
Cyber risks and climate change risks: These remain top concerns for insurers. However, there is a clear shift toward action: many are strengthening cyber exposure management, while others are advancing catastrophe modelling and climate risk monitoring. and
Emerging risks: The most commonly mentioned are ‘forever chemicals’, and social risk. Many firms reported using structured frameworks, such as risk registers and scenario testing to better assess emerging risks.

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This year’s Solvency II analysis paints a picture of a market at a turning point. After a period of sustained premium growth, we’re now seeing early signs of softening, particularly in specialist lines where competition is intensifying.

Wendy Kriz Evans Principal and author of the report