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Stress tests Distraction from vital regulatory change

Responding to the announcement by the European Insurance and Occupational Pensions Authority (EIOPA) of the second Europe-wide stress test for the insurance sector, Peter Vipond, Director of Financial Regulation and Taxation, at the ABI said

 

"The UK insurance industry is currently under great pressure to implement an enormously  complex regulatory framework (Solvency II).  Rather than demand stress tests on the basis of a yet to be agreed framework, it would be better to focus on finalising the proposed rules and helping the industry put the  infrastructure in place to make them work by 2013."

 

"We are also worried that many firms could be now be stretched as their technical teams will also be preparing internal models for use ahead of Solvency II at the same time as the stress test will run."

 

The stress test will be run through the FSA in the UK and will be carried out between now and the end of May, based on 2010 financial results. EIOPA expects to publish the aggregated results of this exercise in July 2011.

 

 

Notes for Editors

 

EIOPAs announcement can be seen at https://eiopa.europa.eu/fileadmin/tx_dam/files/pressreleases/Stress-Test-Exercise-Final-Launch.pdf

 

 

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Last updated 01/07/2016