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EIOPA Stress Test demonstrates the strength of the insurance industry

The European Insurance and Occupational Pensions Authority (EIOPA) has announced the results of its EU-wide 2016 Insurance Stress Test, the first such stress tests since the implementation of Solvency II. 

See the full report here.

Commenting on the results, Steven Findlay, ABI Assistant Director and Head of Prudential Regulation, said:

“These results demonstrate the strength of the UK insurance industry and its resilience to extreme market shocks during an extended period of historically low interest rates.  The new Solvency II regime already requires insurers to hold high levels of capital to deal with unexpected stresses, and these tests assessed a combination of extreme shocks on top of that.  For that reason, the results are particularly reassuring for customers.”


Note to editors:

The relevant to assessing the UK market’s strength are those that include the Long-Term Guarantee (LTG) package, a core part of the Solvency II capital regime and which reflect the long-term nature of insurers’ liabilities and their matching assets.  The LTG package includes the Matching Adjustment and Volatility Adjustment, both permanent parts of Solvency II. 

Last updated 22/12/2016