EIOPA stress test will assess insurers’ vulnerabilities
Thursday, 05 26 2016, Category: Insurance and Reinsurance, Country: Europe
The European Insurance and Occupational Pensions Authority (EIOPA) has introduced an EU-wide stress test for the European insurance sector. The exercise aims to assess insurers’ vulnerabilities and should not be interpreted as a pass-or-fail test, according to EIOPA. It is designed to assess the resilience of the European insurance sector to severe adverse market developments based on a common analytical framework. The 2016 stress test will examine the potential increase of systemic risks in situations of stress. It will focus on two major market risks, the prolonged low yield environment and a negative market shock to asset prices combined with a low risk free rate.
Source: Al Roeya - UAE