Today, the European Insurance and Occupational Pensions Authority (EIOPA) published the second in a series of papers with the aim of contributing to the debate on systemic risk and macroprudential policy. Until now, the debate has mainly focused on the banking sector due to its prominent role in the recent financial crisis. Through this series of papers, EIOPA will ensure that any further extension of the debate to the insurance sector fully reflects the industry's specific nature.
This second paper identifies, classifies and provides a preliminary assessment of the tools or measures already existing within the Solvency II framework, which could mitigate any of the systemic risk sources that were identified in the EIOPA's first paper 'Systemic risk and macroprudential policy in insurance' published in February this year. The paper also includes a detained annex on the macroprudential impact of some of the long-term guarantees measures under stress.