Following analysis of the 2018 Insurance Stress Test results, EIOPA has issued recommendations to National Competent Authorities to address identified vulnerabilities.
Analysis was done at individual group level. Recommendations include:
- to challenge capital and risk management strategies of groups where necessary, and to identify the range of possible management actions, to asses whether these actions are realistic and consider potential second-round effects;
- to check the adequacy and flexibility of systems and risk models used by groups for stress testing; and
- NCAs to enhance cooperation and information sharing with relevant authorities.