Stress Test 2018

Objectives​

 

Stress tests are one of the regular supervisory tools used to assess the resilience of the insurance sector to possible adverse developments.

The 2018 exercise is tailored to assess the vulnerability of the European insurance sector to specific adverse scenarios and will be based on a sample of 42 insurance groups. The scenarios encompass a wide range of risks, including market and insurance specific risks providing more insight into potential vulnerabilities from a financial stability perspective. In addition to the adverse scenarios, a separate investigation on the potential implications of cyber risks will be included.

Timeline ​

​Date ​Activity
April 2018 (2nd half)Workshop with industry representatives
May 2018 – (1st half) Launching event of the Europe-wide stress test with industry representatives and publication of the specifications and reporting templates
July 2018 Submission deadline for participating (re)insurance groups to the national supervisory authorities (NSAs)
September 2018 Finalisation of quality assurance of undertakings' data by national supervisory authories (NSAs) and validation by EIOPA
December 2018 Publication of of the stress test results

Working Process​

The exercise will be conducted in close cooperation with the national supervisory authorities. EIOPA will inform the participating (re)insurance groups about all upcoming steps and provide regularly updates on the status. Consultations with industry representatives will be completed by the end of April 2018.
 
On 28 March 2018, EIOPA invited the main European stakeholders associations, namely Insurance Europe, the CRO (Chief Risk Officers) Forum, the Association of Mutual Insurers and Insurance Cooperatives in Europe (AMICE), the Actuarial Association of Europe (AAE) and the European Insurance CFO (Chief Financial Officers) Forum to participate in a workshop held on 16 April 2018. The objectives of the workshop are to inform the industry representatives about the scope of the stress test exercise and its technical specifications, to consult on the draft reporting templates and to discuss the methodologies used for the analysis and disclosure of the results of the Insurance Stress Test 2018. With this consultation EIOPA expects to enhance transparency on the vulnerability assessment and the disclosure of the stress test results as well as to improve the usability of the reporting templates and by that allowing for better understanding of the scope of stress test exercise and the related requirements.