Solvency II volatility dampener ineffective for euro periphery

Stress tests expose flaw in formula to calculate volatility adjustment

euro

The technical specifications for the European Union-wide insurance stress tests launched in April are reviving doubts about the usefulness of Solvency II's volatility adjustment for insurers.

Figures in the supporting documents for the stress tests published last week by the European Insurance and Occupational Pensions Authority (Eiopa) suggest that in a stress scenario the controversial dampener would fail to shield insurers in the euro periphery against most of the impact of market swings.

At

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: