- The Chartered Insurance Institute-a moving experience
- Marsh & McLennan moves for JLT
- AIR Worldwide estimates industry insured losses resulting from Hurricane Florence’s winds and storm surge will range from $1.7bn to $4.6bn-excluding impact of ongoing unprecedented flooding
- Willis Re annual Silent Cyber Risk Outlook global survey indicates insurers are expecting increased cyber-related losses across all business lines over the next 12-months
- PRA issues consultation paper related to the extension of the Senior Managers and Certification Regime(SM&CR) to insurers
- FCA closes remaining investigations into life insurance sector without taking enforcement action
- Insurance Europe responds to EC proposal for a review of the 2009 Motor Insurance Directive(MID) expired
- Co-operators launches new digital insurance product in two months through Slice Labs Insurance Cloud Service expired
- Aviva completes share buyback prgramme expired
- AXA IM moving to the next phase of its commitment to strengthen Responsible Investment (RI) capabilities expired
- Conning publishes US Life-Annuity Consumer Markets Annual expired
- Five-year dairy farmer microinsurance project launched in Kenya-supported by ICMIF members 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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