The European Insurance and Occupational Pensions Authority (EIOPA) published its June 2016 report on financial stability in the (re)insurance and occupational pension fund sectors of the European Economic Area.
EIOPA observed an ongoing “extremely challenging macro-economic and financial environment”.
Monetary policy and low crude oil prices imply a protracted low yield environment in the short- to medium-term. In this environment, the “double-hit” scenario cannot be ruled out.
Both risks – low yields and a “double-hit” – will be in the focus of EIOPA’s Insurance Stress Test 2016.