Reports and research

Risk assessment | Sustainability | Financial stability

Financial Stability Report December 2018

Financial stability

Early warning system for the European insurance sector

This article proposes an Early Warning System model composed of macro-financial and company-specific indicators that could help to anticipate a potential market distress in the European insurance sector. A distress is defined as periods in which insurance companies’ equity prices crash and CDS...
Statistics | Financial stability

European Insurance Overview 2018

EU - US relations | Cyber Risks

EU-US Insurance Dialogue Project: Insurance industry cybersecurity issues paper

EU - US relations | Cyber insurance

EU-US Insurance Dialogue Project: The cyber insurance market

EU - US relations

EU-U.S. Insurance Dialogue Project - Supervision of Intra-Group Transactions (IGTs)

Since its establishment in 2012, one of the areas of focus for the EU-U.S. Insurance Dialogue Project has been to improve the mutual understanding between the EU and the U.S. on issues relating to group supervision of multi-national insurers. In 2018, one of the areas of focus for the Project has...
Big Data | EU - US relations

EU-U.S. Insurance Dialogue Project - Big Data issue paper

The Big Data working group of the EU-U.S. Project is focusing on the relationship between innovation, technology and insurance, specifically the increasing use of advanced data analytics in the insurance sector. The use of new technology and large datasets in the pricing and underwriting process...
Innovation

Joint Committee Report on the results of the monitoring exercise on automation in financial advice

The Report shows that while the phenomenon of automation in financial advice seems to be slowly growing, the overall number of firms and customers involved is still quite limited. As the identified risks have not materialised and considering the limited growth of the phenomenon, the ESAs believe...
Cyber Risks | Financial stability

Understanding Cyber Insurance - A Structured Dialogue with Insurance Companies

The outcome of this structured dialogue with the industry provides useful insights on the functioning, growth potential, challenges and risks of cyber insurance in Europe in the context of the expected growing importance of cyber insurance in the portfolios of (re)insurers. Although based on a...
Financial stability

Financial Stability Report June 2018

Financial stability

Potential drivers of insurers’ equity investments

As a consequence of the ongoing low-yield environment, insurers are changing their business models and looking for new investment opportunities to deliver the required return. This paper focuses on investments in equities and main drivers of their changes in insurers’ portfolios. In this respect,...
Oversight

YE2015 Market and Credit Risk Comparative Study

Big Data | Innovation

Joint Committee Final Report on Big Data

The report on Big Data analysis the impact of big data on consumers and financial firms. Overall, the ESAs have found that while the development of Big Data poses some potential risks to financial services consumers, the benefits of this innovation currently outweigh these. Many of the risks...
Big Data | Innovation

Use of big data by financial institutions

The factsheet on Big Data aims at informing consumers of financial services about the impact of Big Data. The factsheet provides consumers with the information about the potential benefits and risks of the use of Big Data techniques and aims to raise awareness of the measures consumers can take if...
EU - US relations

EU-US Insurance Dialogue Project: New initiatives for 2017 - 2019

Financial stability

Financial Stability Report December 2017

Financial stability

Macroeconomic fundamentals and latent factor of the EU yield curve

Since the portfolio of the insurers consists largely of bonds, out of which a significant weight consists of Government bonds, insurers are mainly exposed to interest rate risk and sovereign risk. We are motivated to contribute to the debate around the effect of the low yield environment and the...