EIOPA calls for changes to stress test disclosure regime

Written by Adam Cadle

12/04/2022

EIOPA is calling for changes to the insurance stress test disclosure regime, and considers that a change in the legal framework allowing it to disclose the results of individual undertakings is the only way to obtain the disclosure of individual information.

The Authority said it believes that a consistent and disciplined communication of individual stress test results would enhance market discipline, increase participants’ commitment and contribute to a level playing field among insurers and across the financial sector, resulting in a healthier insurance industry as a whole.

Petra Hielkema, chair of EIOPA, said: “Our experience over the past years has shown that without making it a legal requirement, individual disclosures would in all likelihood remain the exception rather than the standard for the sector.

“We have now taken the initiative to ensure that (re)insurers adhere to similar levels of transparency as other parts of the financial system. The insurance industry and its regulatory framework are robust enough and ready for this change.”

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