• A supervisory snapshot of the life insurance market in Europe to assess vulnerabilities and resilience to severe market developments - not a pass or fail exercise
• Focus on two major market risks: A "low-for-long-yield" and a "double-hit" scenario
• 236 insurance undertakings at solo level from 30 European countries participated
• In the pre-stress situation participating undertakings appear adequately capitalized on an aggregate basis
• Impact of stress scenarios shows that the low interest rate environment and a pronounced reassessment of risk premia pose a significant challenge for European insurance undertakings
• "Double-hit" scenario to have a negative impact on the undertakings balance-sheet of 160 billion euros and "low-for-long" an impact of 100 billion euros
• Revealed vulnerabilities require a coordinated supervisory response
• When the viability of the business model is at risk, EIOPA recommends National Supervisory Authorities (NSA's) to consider request
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