Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • May 2015
05

EIOPA launches stress test for pension funds

Open-access content Wednesday 13th May 2015 — updated 5.13pm, Wednesday 29th April 2020

The European Insurance and Occupational Pensions Authority (EIOPA) has launched its first stress test and a quantitative assessment on solvency for occupational pension funds.

2

The stress test will assess the resilience of Institutions for Occupational Retirement Provision (IORPs) and their pension schemes to a range of market scenarios. 

The test will cover both defined benefit (DB) and defined contribution (DC) pension schemes. The regulator said its aim was to test the resilience of DB and hybrid pension schemes against adverse market scenarios and increase in life expectancy as well as to identify potential vulnerabilities of DC schemes.

It will be conducted in 17 European countries where the IORP sector exceeds €500m (£361m) in assets, covering at least 50% of their national market. The member states include the UK, Germany, Spain, the Netherlands, Malta, Luxemburg and Portugal. 

EIOPA said the stress test would provide insight and raise awareness of risks and vulnerabilities for the occupational pensions sector. 

The quantitative assessment follows a consultation paper on further work on solvency of IORPs EIOPA did last year. The regulator said the aim of the quantitative assessment was to gather data and assess the appropriateness of EIOPA's proposals in the consultation paper. 

EIOPA believed the outcomes of the assessment would support EIOPA to further develop its advice to the European Commission on EU solvency rules for IORPs.

Gabriel Bernardino, EIOPA's chair, said: "Pension funds are already experiencing a challenging environment with low interest rates and rising life expectancy. A key vulnerability for the occupational pensions sector is a prolonged period of low interest rates combined with a fall in asset prices due to a re-appraisal of risk on financial markets. The stress test will retrieve valuable information on the sensitivity of IORPs, sponsoring undertakings and members and beneficiaries to such a scenario."

The stress test and the quantitative assessment will be conducted in parallel "to minimise the burden of IORPs". Both exercises will run until 10 August.

This article appeared in our May 2015 issue of The Actuary.
Click here to view this issue
Filed in
05
Topics
Pensions

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Life Actuarial Trainee

England
Up to £55000.00 per annum
Reference
145815

Catastrophe Manager - Top Performing Syndicate

England, London
£70000 - £94000 per annum
Reference
145814

Senior Pricing Analyst

London, England
£40000 - £80000 per annum
Reference
145813
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ