EIOPA publishes its second Discussion Paper on Methodological Principles of Insurance Stress Testing

24 June 2020

The European Insurance and Occupational Pensions Authority (EIOPA) published its second Discussion Paper on Methodological Principles of Insurance Stress Testing. It is based on a constructive dialogue and feedback received from stakeholders in the preparation of the first Methodological Paper.

The second Discussion Paper is structured in three sections addressing the following topics:

• Stress test framework on climate change
• Approach to liquidity stress testing
• Multi-period framework for the bottom-up insurance stress testing

EIOPA invites stakeholders to provide feedback to be considered in the final Paper. To this aim, it contains a series of questions to collect feedback particularly on technical topics linked to key elements of insurance stress testing.

The Discussion Paper is part of a broader process to enhance EIOPA’s stress testing framework. In this context, EIOPA will work on specific stress testing related topics such as the assessment of liquidity positions under adverse scenarios, assessment of the vulnerabilities towards climate-related risks and potential approaches to multi-period stress tests.

The Discussion Paper is open for comments until Friday, 2 October 2020. Stakeholders are invited to submit their feedback via email by using the provided template. Contributions should be sent to the following email address: eiopa.stress.test@eiopa.europa.eu

 

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