EIOPA has published an Opinion under its powers to promote a coordinated EU response to developments which may jeopardise the functioning of the financial markets. The low interest rate environment, as shown by the Japanese experience, is an example of such a development, affecting particularly the solvency of life insurers that offered guaranteed rates of return to policyholders. EIOPA recommends private sector solutions while ensuring that customers are treated fairly. National authorities will have to report outcomes to EIOPA, which will develop an appropriate risk assessment framework. (Source: Supervisory Response to a Prolonged Low Interest Rate Environment)