- World Economic Forum(WEF) Global Risks Report 2019 highlights worsening international relations hindering action across a growing array of serious challenges
- Comments on Brexit vote impasse
- Allianz Risk Barometer highlights cyber and concerns around Brexit as as top risks in UK
- Willis Re's Summary of Natural Catastrophe Events 2018 report estimates insured losses from major natural catastrophes at around $71.5bn
- BIBA highlights opportunities for business in 2019 Manifesto
- UK Comprehensive car insurance prices fell by 6% in 2018 says Confused.com/ Willis Towers Watson analysis
- Insurance Europe concerned that the European Commission’s proposal for an ePrivacy Regulation could hamper insurers’ ability to offer innovative insurance policies to consumers expired
- ArgoGlobal collaborating with broker Axieme and digital platform Jobby in Italy to respond to a need for on-demand, pay-as-you-go insurance for temporary and short-term workers expired
- LV= General Insurance successfully deploys Guidewire Core and Data solutions in the largest transformation the business has ever undertaken expired
- Marsh announces that it had placed more than 10,000 risks in 2018 through Placing Platform Limited(PPL)-over 15,000 in total expired
- ZhongAn and Grab to establish joint venture company to enter the digital insurance distribution business in Southeast Asia expired
- Greenlight Capital Re becomes largest shareholder in Chicogo-based MGU AccuRisk 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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