Solvency II report

Ten years of Solvency II: Navigating the future risk landscape 

Ten years after the introduction of Solvency II, the non-life insurance market is both larger and better capitalised. Assets have grown from £152 billion to £227 billion, while the aggregate solvency coverage ratio has increased from 154% to 192%.

Despite recent softening market conditions, gross written premium has continued to increase year on year since the introduction of Solvency II, reaching £147bn in 2025. However, growth has been slower than in previous years.

Our latest Solvency II report considers how the risk landscape is evolving. Key risks discussed in the report include:

• Geopolitical risk: Remains a top concern for insurers. Reporting has shifted from general geopolitical concerns towards more specific conflicts, particularly those involving Israel, Iran and the US.
• AI risk: Around one-third of insurers in our sample consider AI risk. Where it is discussed, firms typically recognise both the risks and the opportunities arising from its use.
• Cyber risk: Insurers are demonstrating increasingly mature cyber security control environments through penetration testing, operational resilience scenario testing and cyber incident response plans. 
• Emerging risks: Emerging risk frameworks are becoming more embedded within BAU risk management processes. Some firms are also beginning to recognise the interconnected nature of these exposures.