On 14 December 2018, EIOPA published a report on the results of its 2018 stress test for the European insurance sector, together with a factsheet and a set of frequently asked questions.
In this year's exercise 42 European (re)insurance groups participated representing market coverage of around 75 % based on total consolidate assets.
Overall, the exercise confirmed the significant sensitivity the significant sensitivity of the European insurance sector to severe but plausible market shocks. Groups seem to be vulnerable not only to low yields and longevity risks but also to a sudden and abrupt reversal of risk premia combined with an instantaneous shock to lapse rates and claims inflation. On aggregate, the sector is adequately capitalised to absorb the prescribed shocks.
