insurer stress tests News

European Insurers’ Fundamentals Resilient to Moderating Premium Rates, Falling Yields

European insurers approached the new year from a position of strength, having benefited from supportive interest rates and pricing cycles over the past two years. However, 2025 is expected to present more challenges, with falling yields and moderating premium rates …

Bank of England Finds Non-Bank Financial Firms Pose Wider Risks in Crisis Periods

Non-bank financial institutions such as hedge funds remain vulnerable to a sudden financial shock and would not all be able to access the funding they would need in such a crisis, the Bank of England said on Friday. Announcing the …

Bank of England to Deepen System-Wide Stress Test for Banks, Insurers

The Bank of England said on Friday it would start the second leg to its first system-wide stress test of how banks, insurers, pension schemes and clearing houses collectively cope with shocks involving interest rates and risky asset prices over …

Rapid Shocks in Store for Insurers in New Bank of England Stress Tests

The Bank of England said on Tuesday it will check the health of general insurers in 2025 with a “stress test” that includes a rapid series of shocks, as sector capital rules are eased. Regulators have introduced stress tests since …

Europe’s Banks, Insurers Prepare for Potential Winter Power Cuts, Energy Rationing

Some of Europe’s biggest banks are preparing back-up generators and to dim the lights as they brace for potential power cuts and energy rationing that threaten the money system underpinning the region’s economy. As Russia throttles gas supplies to the …

Japanese Insurers Struggle with Climate Change Cost Estimates

TOKYO – As the world tries to price the cost of climate change, Japan’s second largest non-life insurer MS&AD foresees the potential rise in claim payments in 2050 to be anywhere between 5% to 50% from current levels. Sompo Holdings, …

Explaining Climate Change and Financial Disclosure for Insurers

TOKYO – Japanese financial institutions are struggling to put a price tag on the cost of climate change, an effort made difficult by the long timeframe and a lack of data for making credible predictions. Non-life insurer MS&AD, for one, …

COVID-19 Pandemic to Intensify Risks for Insurers: EU Regulator

Insurers in the European Union are confronted with risks on several fronts that are intensified by the COVID-19 pandemic, and could face lengthy legal battles from claims relating to lockdowns, the bloc’s insurance watchdog said on Thursday. Insurers and reinsurers …

EU Weighs Stress Tests to Improve Financial Firms’ Buffers Against Climate Risks

The European Commission is considering stress tests and measures to force financial firms to raise their buffers against climate-change risks, the EU financial services chief said on Wednesday. The move would represent a major change in the bloc’s climate policy …

UK Regulator Asks Insurers to Weigh Possible Business Impact of Climate Change

The Bank of England for the first time is asking British insurers to gauge how global warming might impact the value of the stocks and bonds they hold — and its potential to upend financial markets. The central bank, which …