EIOPA: Insurance Stress Test 2014

20 January 2014

Stress tests represent one of the regular supervisory tools that help to assess the resilience of the insurance sector to adverse situations and to extract valid conclusions to support the stability of the financial system.

The aim of the exercise in 2014 is to test the resilience of insurers regarding market risk under a combination of historical and hypothetical scenarios. Additionally, insurance risk will be tested and, as a follow-up to its Opinion on Supervisory Response to a Prolonged Low Interest Rate Environment, EIOPA will also include a low yield element in the exercise.

Timeline

• 30 April 2014 - Launch of a Europe-wide stress test for the insurance sector;
• May 2014 - Workshop with industry participants;
• 20 June 2014 - Collection and validation of undertakings’ data by the national supervisory authorities (NSAs);
• 21 July 2014 - Centralized validation of all the submissions by EIOPA;
• November 2014  - Disclosure of the results of the stress test analysis.

The exercise will be run in close cooperation with the national supervisory authorities: the NSAs will identify and contact prospective participants in the test.

As of now, EIOPA will provide industry participants with the regular updates on the status and all the upcoming steps of the stress test. Consultations are planned for March 2014.

Full information

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