30 October 2009
Published in: Market risks, Regulation - supervision
CEIOPS confirms stress tests for insurers
Members of the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) today endorsed the proposal to run an EU-wide stress test across the insurance sector in December 2009.
The stress test will be conducted on "large and important" insurance groups in Europe, in accordance with common guidelines and scenarios. The stress test has two objectives: to increase the level of information for policy makers to assess the European insurance sector's potential resilience to shocks, and to aid convergence in supervisory practices.
Three scenarios will be tested, reflecting:
- the development of capital markets between the end of September 2008 and the end of September 2009
- a more severe and prolonged recession
- a situation where inflation picks up rapidly, leading to a steep rise in interest rates.
CEIOPS said it will aim to deliver its findings to "the EU political level" during the first quarter of 2010.