Recent regulatory developments of interest to insurers and their intermediaries. Includes FCA update on the COVID-19 BI insurance test case and EIOPA discussion paper on methodological principles of insurance stress testing.
Contents
- COVID-19: FCA update on business interruption insurance test case
- Insurance stress testing: EIOPA discussion paper on methodological principles
COVID-19: FCA update on business interruption insurance test case
The UK Financial Conduct Authority (FCA) has updated its webpage on the High Court test case concerning business interruption insurance. Among other things, the FCA publishes the defences of the defendants to the case and invites stakeholders to provide comments to it on the defences to assist the FCA in producing its reply (due on 3 July 2020).
Insurance stress testing: EIOPA discussion paper on methodological principles
The European Insurance and Occupational Pensions Authority (EIOPA) has published its second discussion paper on methodological principles of insurance stress testing.
In 2019, EIOPA initiated a process of enhancing its methodology for bottom-up stress testing which resulted in its first methodological paper setting out the methodological principles of insurance stress testing. EIOPA is following the same approach in its second discussion paper and is consulting on additional elements to be potentially applied in future exercises. The second discussion paper therefore addresses the following topics:
- stress test framework on climate change;
- approach to liquidity stress testing; and
- multi-period framework for the bottom-up insurance stress testing.
The consultation ends on 2 October 2020.
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