General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
May 14, 2018

EIOPA launched the fourth stress test exercise for the insurance sector in Europe. Along with the adverse scenario from ESRB, EIOPA published several documents, including technical specifications, explanatory note, templates, and frequently asked questions on the stress testing exercise. The deadline for submission of results to the national competent authorities is August 16, 2018. The publication of the stress test results is planned in January 2019.

The 2018 EIOPA insurance sector stress test will include three stress scenarios. Two of these scenarios aim to analyze the impact of a combination of market and insurance stresses, while the third focuses on specific natural catastrophe events. EIOPA will develop the insurance-specific components of the stress scenarios (such as lapses, longevity, or catastrophe events) while ESRB will provide the two capital market stress scenarios. Scenario 1 is the "yield curve up" scenario combined with a stress on lapses and claims inflation (targeting non-life claim provisions). Scenario 2 is the "yield curve down" scenario combined with lapse and longevity stresses. The capital market stress scenarios were calibrated independently of the additional insurance elements of the scenarios being developed by EIOPA. The reference date for the insurance stress test for 2018 is December 31, 2017.

The stress test templates reproduce, to the extent possible, the Solvency II regular templates used for supervisory reporting. The stress test templates and specifications explicitly identify the information additionally required for the stress test. Information, which is required for supervisory reporting, but is either simplified or not required for the stress test, has been also identified. The target sample for this year includes 42 European insurance groups representing nearly 78% of the European market based on consolidated assets. EIOPA, in cooperation with ESRB, initiates and coordinates the EU-wide stress tests to assess the resilience of financial institutions within its remit to adverse market developments. ECB, in collaboration with ESRB, has developed the narrative and methodology and calibrated the adverse scenarios for the 2018 exercise.

 

Related Links

Keywords: Europe, EU, Insurance, Solvency II, Stress Testing, EU-wide Stress Test, ESRB, EIOPA

Related Articles
News

BCBS Publishes Results of Survey on Proportionality in Bank Regulation

BCBS published a report presenting the results of a survey conducted on proportionality practices in bank regulation and supervision.

March 19, 2019 WebPage Regulatory News
News

US Agencies Adopt Interim Rule to Facilitate Transfers of Legacy Swaps

US Agencies (FCA, FDIC, FED, FHFA, and OCC) are adopting and inviting comments on an interim final rule.

March 19, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Third Update for March 2019

EBA published answers to seven questions under the Single Rulebook question and answer (Q&A) updates for this week.

March 15, 2019 WebPage Regulatory News
News

OCC Updates Recovery Planning Booklet of the Comptroller's Handbook

OCC updated the Recovery Planning booklet of the Comptroller’s Handbook.

March 15, 2019 WebPage Regulatory News
News

EBA Publishes Report on Convergence of Supervisory Practices Across EU

EBA published annual report on the convergence of supervisory practices in EU.

March 14, 2019 WebPage Regulatory News
News

CPMI-IOSCO Publish Update to Level 1 Assessment of PFMI Implementation

CPMI and IOSCO jointly updated the Level 1 Assessment Online Tracker on monitoring of the implementation of the Principles for financial market infrastructures (PFMI).

March 14, 2019 WebPage Regulatory News
News

Agustín Carstens of BIS Speaks About New Role of Central Banks

While speaking at the 20th anniversary conference of the Financial Stability Institute (FSI), Agustín Carstens, the General Manager of BIS, highlighted the need for regulatory actions in light of the continued evolution of financial technology.

March 14, 2019 WebPage Regulatory News
News

ESMA Analyzes Impact of Regtech and Suptech for Markets and Regulators

ESMA published the results of its analysis of the regulatory and supervisory technologies—also known as regtech and suptech—being developed in response to various demand and supply drivers in the financial sector.

March 14, 2019 WebPage Regulatory News
News

PRA Publishes Policy Statement on Group Supervision Under Solvency II

PRA published a policy statement (PS9/19) that provides feedback on responses to the consultation paper CP15/18 and the final supervisory statement SS9/15 (Appendix) on group supervision under Solvency II.

March 14, 2019 WebPage Regulatory News
News

ECB Announces Start Date for Euro Short-Term Rate

ECB announced that it will start publishing the euro short-term rate (€STR) as of October 02, 2019, reflecting the trading activity of October 01, 2019.

March 14, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2759