April 05, 2019

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

Related Articles
News

US Agencies Consult on Capital Treatment of Land Development Loans

US Agencies (FDIC, FED, and OCC) issued a proposed rule on the treatment of loans that finance the development of land for purposes of the one- to four-family residential properties exclusion in the definition of high volatility commercial real estate (HVCRE) exposure in the regulatory capital rule.

July 12, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Second Update for July 2019

Under the Single Rulebook question and answer (Q&A) updates for this week, EBA published answers to five questions related to supervisory reporting.

July 12, 2019 WebPage Regulatory News
News

ESMA Updates Manual for European Single Electronic Format in EU

ESMA updated the reporting manual for European Single Electronic Format (ESEF).

July 12, 2019 WebPage Regulatory News
News

FED Updates Supplemental Instructions for Reporting Form FR Y-9C

FED updated the supplemental instructions for FR Y-9C reporting.

July 12, 2019 WebPage Regulatory News
News

EBA Publishes Report on Monitoring Implementation of LCR in EU

EBA published its first report on the monitoring of the implementation of liquidity coverage ratio (LCR) in EU.

July 12, 2019 WebPage Regulatory News
News

APRA Applies Additional Capital Requirements to Three Australian Banks

APRA is applying additional capital requirements to three major banks in Australia to reflect higher operational risk identified in their risk governance self-assessments.

July 11, 2019 WebPage Regulatory News
News

IMF Report on 2019 Article IV Consultation on Euro Area Policies

IMF published its staff report in context of the 2019 Article IV consultation on euro area policies with member countries.

July 11, 2019 WebPage Regulatory News
News

FSB to Survey Practices on Cyber Incident Response and Recovery

FSB launched a survey on the industry practices on cyber incident response and recovery.

July 11, 2019 WebPage Regulatory News
News

ECB Appoints New Members of Supervisory Board

The Governing Council of ECB appointed Edouard Fernandez-Bollo, Kerstin af Jochnick, and Elizabeth McCaul as representatives to the Supervisory Board of ECB Banking Supervision, for a five-year non-renewable term.

July 11, 2019 WebPage Regulatory News
News

OSFI Consults on Applying Proportionality to Pillar 1 Rules in Canada

OSFI published a discussion paper seeks input on possible tailoring of the capital and liquidity requirements for small and medium-size deposit-taking institutions.

July 11, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3435