European Insurance Watchdog Urges Insurers to Manage Private Credit Risks
The European Insurance and Occupational Pensions Authority (EIOPA) has emphasized the need for European insurers to effectively manage the risks associated with private credit investments. Petra Hielkema, chair of EIOPA, highlighted the importance of identifying, measuring, managing, and reporting these risks during a Bloomberg TV interview. Following the 2008 financial crisis, banks have reduced their involvement in certain financing activities, allowing insurers and pension funds to fill the gap. This shift has enabled the industry to diversify investments and achieve higher returns from less liquid assets. However, regulators are concerned about maintaining trust in the sector, especially if firms incur losses. 
