The European insurance industry reiterated its views that any stress test exercise should have clear objectives, appropriate timescales and be communicated appropriately. In particular, the results of any stress test should only be published at aggregate level.
On climate change stress testing - Insurance Europe agrees that an appropriately designed climate change stress tests could provide information to help assess industry exposures. However, initial climate stress tests should be explorative.
On liquidity risk stress testing - While liquidity risk is important for insurers, it is well managed due to existing regulatory provisions and insurers' integrated approach to liquidity and risk management, which already includes stress testing, and which is widely reported upon within the ORSA.
On multi-period stress testing - Insurance Europe takes the view that multi-period stress tests are too complicated and costly to be taken forward.