Dáil Éireann Debate, Friday - 16 September 2016
220. Deputy Pearse Doherty asked the Minister for Finance the number of insurers that will take part in the EIOPA stress tests in 2016; the percentage of the market the partaking companies account for and the sectors of the market, life or non-life, they represent; and if he will make a statement on the matter. [24624/16]
View answerThe 2016 EIOPA Stress Test Exercise is tailored to assess the insurance sector's vulnerabilities to a combination of market risk adverse scenarios, focussing on two major market risks: a prolonged low-yield environment and a 'double-hit' scenario where a sudden drop in asset prices is combined with a low risk free rate. EIOPA launched the exercise in May and aims to publish the results by December.
The Central Bank of Ireland has informed me that in April, it was mandated by EIOPA to identify a relevant sample of the most relevant insurance undertakings from a low yield perspective (i.e. life insurance undertakings offering any type of interest guarantee products).
This sample was to be representative of the national market, including features like varying type and size of the undertakings, i.e. also including an adequate number of medium and smaller solo undertakings. The sample of participants was to include a coverage of a minimum of 75% of the national market share in terms of gross life technical provisions (excluding health and index-linked and unit-linked).
A sample of 14 participants was selected by the Central Bank. Participants were informed of their requirement to participate in the exercise by the Central Bank on the 5th May and the project was launched on the 24th May. The submissions have been received and a multiphase data validation process is underway.
This exercise is still in its execution phase and has yet to be finalised and parameters may change at any stage prior to publication of the final report in December.
