Featured Product

    EIOPA Launches the EU-Wide Insurance Stress Test for 2018

    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

    Featured Experts
    Related Articles
    News

    EIOPA Forms Consultative Expert Group on Digital Ethics in Insurance

    EIOPA established the Consultative Expert Group on Digital Ethics in Insurance to assist EIOPA in the development of digital responsibility principles in insurance.

    September 17, 2019 WebPage Regulatory News
    News

    FASB Proposes Taxonomy Changes Related to Topics 848 and 470

    FASB proposed taxonomy improvements for the proposed Accounting Standards Update on topic 848 on facilitation of effects of reference rate reform on financial reporting.

    September 16, 2019 WebPage Regulatory News
    News

    BoE Statement on Recalculating Transitional Measures Under Solvency II

    BoE notified that it will be willing to accept applications from firms to recalculate transitional measure on technical provisions (TMTP) as at September 30, 2019.

    September 16, 2019 WebPage Regulatory News
    News

    BIS Hosts Conference to Discuss Issues from Emergence of Stablecoins

    BIS hosted a conference in Basel to discuss policy and regulatory issues posed by the emergence of stablecoin initiatives backed by financial institutions and large technology companies.

    September 16, 2019 WebPage Regulatory News
    News

    BIS Paper on Embedded Supervision of Blockchain-Based Financial Market

    BIS published a working paper that investigates ways to regulate and supervise blockchain-based financial markets.

    September 16, 2019 WebPage Regulatory News
    News

    BoE Paper on Market-Implied Systemic Risk and Shadow Capital Adequacy

    BoE published a working paper that presents a forward-looking approach to measure systemic solvency risk.

    September 13, 2019 WebPage Regulatory News
    News

    HKMA Consults on Policy Module on Pillar 2 Supervisory Review Process

    HKMA is consulting on the revised Supervisory Policy Manual module CA-G-5 that sets out the HKMA approach to conducting the supervisory review process under Pillar 2.

    September 13, 2019 WebPage Regulatory News
    News

    PRA Publishes Waiver by Consent of Continuity of Access Rules

    PRA published a new waiver by consent to waive the Continuity of Access requirements contained in the Depositor Protection Part of the PRA Rulebook (DPP).

    September 13, 2019 WebPage Regulatory News
    News

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

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to three questions.

    September 13, 2019 WebPage Regulatory News
    News

    BoE Publishes Update on Meeting of Working Group on Risk-Free Rates

    BoE published the minutes of the July meeting of working group on sterling risk-free reference rates.

    September 13, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3827