EIOPA published its second half-year financial stability report 2011

20 December 2011

The risks stemming from exposures to sovereign and banking debt as well as the macro-economic outlook are the main factors which may jeopardise the financial stability of the European insurance and occupational pension sectors going into 2012.

• European insurance and occupational pensions industry continue to face risks originating from high concentrations of exposures to sovereigns and banks.
• Results of the low yield stress test show that the insurance industry would be negatively affected if a scenario were to materialise where yields remain low for a prolonged period of time.
• Reinsurers have faced above average losses due to significant natural catastrophes that took place.

The financial turmoil has in general not affected the occupational pensions sector as severely as some other financial industries. However, the crisis has had an impact on pension funds, primarily in their role as institutional investors, and has also had a significant impact on consumer confidence.

Press release

Full report

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