The Association of British Insurers (ABI) says that in so far as it is aware, all UK insurers have passed the European Insurance and Occupational Pensions Authority’s (EIOPA) second European stress test.
Between March and May, EIOPA tested insurers’ for their ability to meet the future Solvency II minimum capital requirements under a number of stress scenarios.
It also performed a supplementary test to evaluate sovereign bond exposures.
Earlier this week, the body announced that around 10% of firms did not meet minimum capital requirements under the “adverse” stress scenario, and that 5% had failed its sovereign bond yields test.
The ABI’s director of financial regulation and tax, Peter Vipond, comments: “These results re-enforce the point that UK general and life insurers have robust capital reserves, and Solvency II must not push these up to a point where there is no added prudential benefit and customers suffer.”
EIOPA’s exercise was completed by 221 insurance and reinsurance groups and companies, headquartered in the European Union, Iceland, Liechtenstein, Norway and Switzerland.
Similar Posts:
- PwC appoints insurance reporting head
- Feds To Issue Rules On ‘Grandfathered’ Health Plans And New Law
- Important Elements of an Affordable Life Insurance Policy
- Know the Basic Types of Drug Testing
- Life Insurers Could Lose High Ratings if U.S. Defaults
