Ignore Eiopa's stress test results at your peril

Worst-case scenario looks worryingly possible

Rob Mannix at Insurance Risk
Rob Mannix, Editor

The spectre of deflation and quantitative easing in the eurozone is making the worst-case scenario from Eiopa’s stress tests last year look worryingly possible. The results of the Eiopa exercise must be treated carefully, given that many participants did not apply long-term guarantee measures in their submissions. But, even so, the data points to the industry’s vulnerability to prolonged low rates combined with plunging asset values.

This is not a revelation in the parts of Europe where firms ar