Bucharest, 17 December 2021 –The European Insurance and Occupational Pensions Authority (EIOPA) has published the results of its 2021 European insurance market stress test, which assessed the resilience of the insurance industry in a scenario where the COVID-19 pandemic continues, with low interest rates, for a longer period of time.
Despite the severe economic and financial implications of the COVID-19 pandemic, the European insurance industry entered the stress test exercise with a strong level of capitalisation - evidenced by a solvency ratio of 217.9% at the end of 2020. This robust buffer in solvency allowed participants to absorb the shock of the crisis generated by the COVID-19 pandemic.
The 2021 insurance stress exercise provides supervisors with valuable insight into the capital and liquidity of European insurers in a severe but plausible scenario. It also provides a useful basis for a dialogue between supervisors and participants to address vulnerabilities that have emerged.
EIOPA and the competent national authorities will analyse the results to gain a deeper understanding of the risks and vulnerabilities of the insurance sector in the current context. EIOPA will also assess the need to issue recommendations on the relevant concerns identified during the exercise.
At the same time, EIOPA has developed a digital transformation strategy which aims to ensure a systematic and balanced approach to technological change in the European insurance and private pension markets. EIOPA believes that national authorities must become digital, user-driven organisations.
More details on the EIOPA stress test can be found HERE.
Information on the digital transformation strategy can be found in issue no. 49/15.12.2021 - Trends and risks in local and international financial markets report, which can be accessed HERE.
About the Financial Supervisory Authority
The Financial Supervisory Authority is the national authority, established in 2013 by GEO 93/2012 approved by Law 113/2013, for the regulation and supervision of the insurance markets, private pensions, as well as the capital market. The FSA contributes to strengthening the integrated functioning framework of the three sectors, amounting to over 10 million participants. More information can be found on www.asfromania.ro.