Transcript Ins stress tests - Central Bank of Ireland

2014 Stress Tests
Stress
Tests
Launch of EU-wide stress tests
April 2014
Deadline for submission of data to
NSAs’
July 2014
Disclosure of results
November 2014
Latest News
The current anticipated timeline in relation to the 2014 European Insurance and
Occupational Pensions Authority (EIOPA) Stress Test is the following:
30 April 2014: Launch of a Europe-wide stress test for the insurance sector;
20 May 2014: Workshop with industry participants;
May – June: Q&A procedure for industry participants
11 July 2014: Deadline for submission of undertakings’ data to the national supervisory
authorities (NSAs)
31 July 2014: Validation of undertakings’ data by NSAs;
August – mid September: Centralized validation of all the submissions by EIOPA;
November 2014: Disclosure of the results of the stress test analysis.
Overview
EIOPA’s 2014 Stress Test was launched on the 30 April
2014. The technical specifications for the insurance stress
test and for the Solvency II preparatory phase were
published on the same date. The aim of the stress
exercise is to test the resilience of insurance undertakings
market risk using a combination of historical and
hypothetical scenarios. Insurance risk will be tested and,
in a follow-up to its Opinion on Supervisory Response to a
Prolonged Low Interest Rate Environment, EIOPA will
include a low yield element in the stress exercise.
Instructions to National Supervisory Authorities (NSAs)
regarding the data submission procedures were issued on
11th July 2014. The results of the stress test analysis are
expected to be published in November 2014. A number
of updates to the Stress Test have been made since the
launch of the exercise. These relate to the Q&A
document, the Stress Test Specifications, the reporting
template and the tool for the generation of risk-free
curves. The 8th set of Q&A has been published and a
reporting template and an automatic updating tool was
provided on 3 July.