EIOPA Publishes the Financial Stability Report in June 2018
EIOPA published the Spring 2018 financial stability report on the insurance, reinsurance, and occupational pensions sectors in the European economic area. The report covers developments in financial markets, the macroeconomic environment, and the insurance, reinsurance, and occupational pension fund sectors.
The report discusses the key risks identified for the insurance and occupational pensions sector. It then elaborates on the risks covering the insurance, reinsurance, and pensions sectors. Next, the report provides the final qualitative and quantitative assessment of the identified risks; the risks are assessed in terms of the likelihood and impact of their materialization, while also using the qualitative questionnaires. The report also includes a thematic article presenting potential drivers of equity investments by insurers.
The financial stability report shows that overall the insurance sector continued to show robust results in 2017. Insurance companies are, on average, adequately capitalized and deliver positive profitability, despite the low-yield environment. The reinsurance industry appears to have sufficient capital to absorb global insurance industry catastrophe losses that were considerably higher in 2017, compared to the long-term average. However, the impact of the large insured losses on future prices in the reinsurance sector is still uncertain.
In the European occupational pension fund sector, total assets increased in the euro area. The investment allocation as well as the average cover ratios for defined benefit schemes remained broadly unchanged. The new framework of information requests for the occupational pensions sector, which was published in April 2018, will allow for a more thorough analysis based on a more complete and relevant data set for the pensions sector from the third quarter of 2019 onward.
Related Links
Keywords: Europe, EU, Insurance, Reinsurance, Occupational Pensions, Financial Stability Report, EIOPA
Next Article
FED Publishes Financial Stability Report in May 2019Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.