Reports and research
Financial stability
Re-evaluation of the capital charge in insurance after a large shock
Motivated by the recent introduction of regulatory stress tests in the Solvency II framework, we study the impact of the re-estimation of the tail risk and of loss absorbing capacities on post-stress solvency ratios. Our contribution is threefold. First, we build the first stylised model for re-...
Supervision
Final Report Good Supervisory Practices for Reducing Mechanistic Reliance on Credit Ratings
Financial stability
The Impact of the Monetary Policy Interventions on the Insurance Industry
This paper investigates the effect of the conventional and unconventional (e.g. Quantitative Easing) monetary policy intervention on the insurance industry. We first analyse the impact on the stock performances of 166 (re)insurers of the last Quantitative Easing programme launched by the ECB by...
Financial stability
Updating the Long Term Rate in Time: A Possible Approach
This study proposes the potential methodological approach to be utilized by regulators when setting up a Long-Term Rate (LTR) for the evaluation of insurers’ liabilities beyond the last liquid point observable in the market. Our approach is based on the optimization of two contradictory aspects –...
Digitalisation
Report on Good Practices on Communication Tools and Channels for communicating to occupational pension scheme members
Financial stability
Impact of Mergers and Acquisitions on European Insurers: Evidence from Equity Markets
Under the current low yield environment insurers are changing their business models and looking for new investment and business opportunities. This is also reflected in an increasing interest in mergers and acquisitions to achieve sufficient returns. However, there is no clear answer in the...
Financial stability
Assessing Systemic Risk of the European Insurance Industry
This paper investigates the systemic relevance of the insurance industry. We do it by analysing the systemic contribution of the insurance industry vis-á-vis other industries by applying three measures, namely the linear Granger causality test, conditional value at risk and marginal expected...
Consumer protection
Report on Consumer Protection Issues arising from the sale of Mobile Phone Insurance
Financial stability
Insurance Sector Profitability and the Macroeconomic Environment
Profitability is one of the most important determinants of insurers’ performance and healthiness. This article empirically investigates the link between the macroeconomic environment and insurers’ profitability using cross-country European aggregate data. Our empirical results suggest that low...
Financial stability
Macroprudential Objectives and Instruments for Insurance
This article seeks to contribute to the ongoing debate on the objectives of macroprudential policies and the interaction between micro- and macroprudential policy in insurance. We consider two channels through which the insurance sector could influence economic growth and link these considerations...