The European Insurance and Occupational Pensions Authority (EIOPA) has published its recommendations to national competent authorities (NCAs) under article 21(2)(b) of the EIOPA Regulation (1094/2010/EU). This follows the findings of EIOPA’s 2021 Insurance Stress Test, published in December 2021.
The recommendations are grouped into three different subject matters: (i) identified vulnerabilities (recommendations 1-3); (ii) availability of actions to manage adverse conditions (recommendations 4 and 5); and (iii) an individual undertaking-specific recommendation (recommendation 6).
The stress test exercise focused on a prolonged COVID-19 scenario in a ‘lower for longer’ interest rate environment and evaluated its impact on the capital and liquidity position of the entities in scope. The scenario identified a set of market and insurance shocks specifically constructed to reflect the EIOPA and ESRB assessment of prevailing systemic risks to the financial system at that point in time.
EIOPA 2021 Insurance Stress Test Recommendations (EIOPA-BoS-22/123)
Webpage
The FCA has published a new webpage on operational resilience for insurance firms. This follows the FCA’s Policy Statement (PS21/3) on operational resilience published in March 2021, alongside the PRA’s operational resilience Policy Statement (PS7/21) and the Bank of England’s policy documents for financial market infrastructure firms.
The website covers:
Webpage: Operational resilience insights for insurance firms
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