- FCA publishes final report of its Wholesale Insurance Brokers market study-no evidence of significant levels of harm that merit the introduction of intrusive remedies but some areas of concern with scope for improvement
- EIOPA issues Recommendations for the insurance sector in light of the UK withdrawing from the European Union without a withdrawal agreement
- Insurance Europe responds strongly to recently-published US Treasury/Internal Revenue Service’s proposed Base Erosion and Anti-abuse Tax (BEAT) regulations
- SCOR "delivers robust growth and solid recurring profitability" in 2018 says CEO Kessler
- KPMG report indicates UK InsurTechs saw over $1bn of investment activity through 2018, up from $792m in 2017
- Allianz increases fund size of digital investment unit to E1bn
- DeadHappy, the UK’s first fully digital life insurance brand, launched expired
- The Floow involved in UK Government’s UPLIFT project to enhance technologies in improved risk understanding for motor insurance products making mobility smarter and safer for all expired
- Unions and insurers issue joint warning about burden of significant increase in EU regulation on insurance workers expired
- FCA announces Goldwag as new Chair of the independent Financial Services Consumer Panel expired
- Antares appoints Battle as CEO expired
- Arig has tough 2018-has taken certain measures to reorganize its Lloyd’s book of business expired
16th May 2018
EIOPA launches fourth stress test for European insurance sector-including cyber risk for the first time
The European Insurance and Occupational Pensions Authority (EIOPA) has launched its fourth stress test for the European insurance sector. This regular exercise aims to assess insurers’ vulnerabilities. It is not a pass-or-fail-exercise.
For each stress test, EIOPA tailors the scope and scenarios according to developments in market conditions and their potential negative implications for insurers. The 2018 scenarios encompass a combination of market and insurance
specific risks, including a natural catastrophe scenario. The objectives of the fourth insurance stress test are:
-To assess vulnerabilities of the European insurance sector to specific adverse scenarios with potential negative implications for the European financial markets and the real economy
-To raise the awareness of the potential threats to financial stability posed by the insurance sector at the European level
-To increase transparency by requesting the voluntarily disclosure of individual results by participating groups.
This year’s exercise targets 42 European insurance groups. EIOPA, in coordination with the national competent authorities, selected the companies according to size,
European Union-wide and local market coverage as well as relevance for financial stability. In total, the target sample represents approximately 78% European market
coverage, based on total consolidated group assets according to Solvency II financial stability reporting.
The deadline for submission of results to the national competent authorities is 16th August. EIOPA will regularly publish questions and answers addressing queries from the participating groups. The publication of the stress test results is planned in January 2019.
Gabriel Bernardino, chairman of EIOPA, comments “The scenarios reflect severe but plausible external shocks including insurance specific shocks. Furthermore, for the
first time the exposure to cyber risk and best practices in dealing with these risks is assessed. This stress test will therefore provide further valuable insight to the
resilience of the European insurance sector. The increased transparency is key to ensure a level playing field and enhance market discipline among the stress test participating groups.
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