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The industry called on EIOPA to ensure that the objectives of future stress testing exercises are clearly defined and articulated. In particular, the industry highlighted that stress testing must not be used as a parallel to Solvency II and should not be designed or used in a manner which leads to an amplification of capital requirements.
The industry further called for the approach, scope and specifications of future exercises to be proportionate to its objective. It requested a reduced frequency of exercises and improvements in the planning and timelines to alleviate the burden on industry. Further standardisation of some operational aspects and extended use of insurers' existing tools and expertise were also suggested as improvements.
Finally, the industry reiterated that the calculation of the post-stress solvency capital requirement is not necessary to achieve EIOPA's financial stability mandate and that the results of stress test exercises should continue, as in previous years, to be published at aggregate level.
Full joint response on Insurance Europe