EIOPA has published a document on the impact of EU-wide insurance stress tests on equity prices and systemic risk.
In the document, EIOPA details its analyses of the impact of the 2014, 2016 and 2018 stress test exercises on the equity prices of insurance companies. It reports to find a statistically significant impact only for the publication of the 2018 exercise results. EIOPA further claims that its analysis suggests that 2014 and 2018 exercises contributed to the decline in systemic risk.
EIOPA note that this is the first paper that investigates this topic for the European insurance sector and that the empirical results could help improve the communication and design of future stress test exercises.
Insurance Europe