NBB Insurance Stress Test 2019
Objectives
Stress testing is an appropriate tool to identify vulnerabilities of the financial system and to assess the potential impact of risks on the stability of the financial system in general and the insurance sector more specifically. Stress testing also helps to identify those undertakings that may pose a risk to the stability of the financial system or the insurance sector. The National Bank of Belgium (NBB) can, after the analysis of the stress test results, issue recommendations to be implemented by the insurance undertakings in order to contribute to the stability of the financial system.
In 2019, a significant part of the Belgian insurance sector is subject to a stress test consisting of two scenarios.
The first scenario (Belgian Adverse) assesses the impact of a repricing of the Belgian sovereign debt on the insurers’ solvency positions. The Belgian Adverse scenario consists of three parts:
- 100 basis points increase of the OLO spread
- 200 basis points increase of the OLO spread
- Reverse stress, whereby the insurer has to determine the OLO spread increase at which its solvency ratio drops below 100%.
The second scenario (Low Yield) assesses the impact of a continued decline in the risk-free rates on the insurers’ solvency positions.
Results
Publication date |
Document |
30 October 2019 |
|
30 October 2019 |
Timeline
Date |
Activity |
1 April 2019 |
Launch of the NBB Insurance Stress Test 2019 |
25 April 2019 |
Information session at the NBB |
21 June 2019 |
Deadline submission of the results |
July 2019 |
Validation and analysis of the results |
Stress Test Specifications
Publication date |
Document |
5 April 2019 | NBB IST 2019 Technical Specifications v1.1 |
1 April 2019 | NBB IST 2019 Technical Information v1.0 |
Questions & Answers
Publication date |
Document |
21 May 2019 | Insurance Stress Test 2019 - Q&A |
Reporting Templates
Publication date |
Document |
1 April 2019 |
Background Documents
Publication date |
Document |
1 April 2019 |
NBB_2017_06: NBB_2016_39: |
1 April 2019 |
OneGate Manual: |