The European Insurance and Occupational Pensions Authority (EIOPA) has made proposals to increase transparency in its opinion on the publication of individual results in the context of insurance stress tests, published online on Tuesday 12 April.
EIOPA, which conducts EU-wide crisis simulation exercises to assess the resilience of the European insurance sector, has so far reported the results on the basis of aggregated data. Despite its efforts to improve transparency, EIOPA “believes that consistent and disciplined communication of individual stress test results would enhance market discipline, increase the commitment by participants and contribute to a level playing field among insurers and across the financial sector”.
In its opinion, the Authority proposes an amendment to the legal framework of its regulation to allow it, like the EBA, to report the individual results of financial institutions participating in resilience assessments. As part of the review of the Solvency II Regulation, EIOPA is also proposing to amend the text to allow for the publication of stress test results.
Petra Hielkema, President of EIOPA, said in a statement: “Our experience over the past few years has shown that, without making it a legal requirement, individual disclosures are likely to remain the exception rather than the norm for the sector. We have now taken the initiative to ensure that (re)insurers adhere to similar levels of transparency as other parts of the financial system. The insurance industry and its regulatory framework are sufficiently robust and ready for this change”.
To read the full EIOPA opinion: https://aeur.eu/f/19d (Original version in French by Anne Damiani)