EIOPA Announces Results of the EU-wide Insurance Stress Test 2014
NOVEMBER 30, 2014
  • Insurance sector is in general sufficiently capitalised in Solvency II terms;
  • 14% of companies (representing 3% of total assets) have a Solvency Capital Requirement (SCR) ratio below 100%;
  • The sector is more vulnerable to a “double hit” stress scenario that combines decreases in asset values with a lower risk free rate;
  • In a prolonged low yield scenario, 24% of insurers would not meet their SCR and certain companies could face problems in meeting their promises in 8-11 years’ time;
  • EIOPA issued recommendations to National Supervisory Authorities (NSAs) in order to address the vulnerabilities identified in a consistent way throughout the EU.

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EIOPA Insurance Stress Test 2014

Recommendations under Article 21(2)(b) of the EIOPA Regulation and Information Request under Article 35 of the EIOPA Regulation EIOPA Stress Test 2014