NBB launched its 2019 stress test for the insurance and reinsurance companies governed by the Belgian Law. The published documents include technical specifications, technical information, reporting templates, user manual, and framework of stress tests for the insurance sector. NBB also released the timeline of the stress testing exercise. The deadline for submission of results is June 21, 2019. NBB can, after the analysis of the stress test results, issue recommendations to be implemented by the insurance undertakings.
In 2019, a significant part of the Belgian insurance sector will be subject to a stress test, which will consist of two scenarios.
- The first scenario (Belgian Adverse) assesses the impact of a repricing of the Belgian sovereign debt on the solvency positions of insurers. The Belgian Adverse scenario has three parts—100 basis points increase of the Belgian sovereign bond (OLO) spread; 200 basis points increase of the OLO spread; and reverse stress, whereby the insurer has to determine the OLO spread increase at which its solvency ratio drops below 100%.
- The second scenario (Low Yield) assesses the impact of a continued decline in the risk-free rates on the solvency positions of insurers.
Related Link: Insurance Stress Test 2019
Keywords: Europe, EU, Belgium, Insurance, Stress Testing, Reporting, Stress Test Scenarios, NBB
Previous ArticleGLEIF Issues Monthly Global LEI Data Quality Report for June 2019
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.