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CEIOPS released its semi-annual Financial Stability Report on the European insurance, reinsurance and occupational pension fund sector analysing the financial stability of the insurance market and the pension fund sector in the EU/EEA countires for 2005.
The report concludes among others that solvency has remained adequate for the whole European insurance sector and appears to improve somewhat, partly helped by the recovery in the equity market.
Also, the insurance industry as a whole faces several risks and challenges, of which are the most prevalent financial risks and risks related to financial market volatility.
Finally, growth of the occupational pension fund sector is expected to accelerate further over the coming decades as a means of diversifying some of the longevity risk related to traditional social security systems.