On 19 November, the European Supervisory Authorities (EBA, EIOPA, and ESMA – the ESAs) together with the European Central Bank (ECB), released the results of the one-off ‘Fit-For-55’ climate scenario analysis.
The analysis demonstrates that while transition risks alone are unlikely to threaten financial stability, their combination with macroeconomic shocks can increase losses for financial institutions and may lead to disruptions.
EIOPA’s webpage here details the considerations for the insurance industry.
The secretariat of Insurance Europe reviewed the documents and prepared a summary.