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Erscheinung:01.12.2014 Insurance stress test: EIOPA publishes Final Report 2014

The European Insurance and Occupational Pensions Authority (EIOPA) has published the Final Report on the pan-European stress test 2014 for the insurance sector, which encompassed important European and national insurance undertakings and insurance groups. BaFin played a significant role in the EIOPA working group responsible for preparing and conducting the stress test.

The objective of the test was to assess the resilience of the European insurance sector to possible negative developments, in particular to a prolonged period of low interest rates.

Crucial test under Solvency-II conditions

In addition to the comprehensive life insurance survey (“Vollerhebung Leben”) conducted by BaFin, the EIOPA stress test was another crucial test reflecting Solvency II conditions which the German insurance sector had to undergo this year. While the BaFin survey examined the state of all German life insurers’ preparations for Solvency II based on precise and undertaking-specific parameters, the undertakings which participated in the EIOPA stress test carried out their scenario calculations based on standardised specifications without fully utilising the Solvency II transitional measures. The participants included both property/casualty insurers and life and health insurers.

“Even though the two surveys basically analysed different participants and different scenarios, the results of the EIOPA stress test confirm that a prolonged low interest rate phase will remain a big challenge for the German insurance sector,” said Felix Hufeld, Chief Executive Director of Insurance Supervision.

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