Following the publication of the results and conclusions of the insurance stress test in December 2021, the European Insurance and Occupational Pensions Authority (EIOPA) issued its recommendations to supervisors and insurers on Monday 21 March 2022. The objective of this test is to assess the resilience of the European insurance sector to adverse scenarios in the financial markets or to insurance shocks.
EIOPA recommends that national competent authorities consider whether companies are taking concrete steps to move from ‘Solvency I’ to ‘Solvency II’ (see EUROPE 12795/1), and that they allocate sufficient resources to ensure sufficiently flexible risk frameworks and models.
EIOPA also encourages national authorities to assess the decision-making processes of test participants, the ability to gather the necessary information in a short period of time, and the flexibility and appropriateness of the models used by companies to produce the required results.
Finally, EIOPA recommends supervisory measures, including on-site inspections, if necessary, for one of the participants based on the information provided in the validation process.
See the recommendations: https://aeur.eu/f/v9 (Original version in French by Anne Damiani)