EIOPA has published the draft technical specifications for the EIOPA 2021 Stress Test exercise .
Note that the draft specifications are only intended to trigger technical discussion. The document has not yet been subject to EIOPA’s approval process; hence it might be subject to modifications and cannot be considered an official EIOPA document.
EIOPA 2021 insurance stress test – Presentation (15.01.2021)
EIOPA 2021 insurance stress test – Presentation_Consolidated.pdf
EIOPA has published the second paper on the methodological principles of insurance stress testing. The Methodological Paper is a follow-up to the consultation with stakeholders and focuses on the liquidity component. Overall, it is a further step in enhancing EIOPA’s stress testing framework.
In particular, the paper sets out methodological principles that can be used to design bottom-up stress test exercises to assess the vulnerability of insurers to liquidity shocks. The conclusions are based on the current understanding and knowledge of the liquidity risk in the insurance industry.