Promoted the Italian insurance companies. Eiopa - the European Insurance and Occupational Pensions Authority which has the task of supervising the European insurance market, has carried out stress tests aimed at assessing the state of health of continental insurance companies. Out of 42 groups in total, four Italian groups are under examination: Generali, Intesa Sanpaolo Vita, Poste Vita and Unipol Group.
The results confirmed the solidity of Italian companies which, from the point of view of solvency, record on average a higher performance than that of the European sample.
“In all three hypothesized scenarios, albeit severe – explains ANIA, the National Association of Insurance Companies – the Italian market continues to be adequately capitalised”.
The first scenario, that “Yield curve up”, analyzes how insurers would “behave” in an extreme situation characterized by rising interest rates, worsening bond spreads, a mass outflow of policyholders and a significant increase in inflation. Well, even in a gloomy scenario like this, the solvency index of the four Italian insurance companies would continue to be positive, even if lower than that of the European sample.
Second scenario, “Yield curve down”. The test assumes a prolonged phase of low rates, with an increase in longevity. Italian insurance companies are on average more solid than other European companies.
Third and last scenario, named “Nat Cat”. 8 catastrophic events occur simultaneously: 2 earthquakes with epicenters in Italy, 4 storms and 2 floods located in the rest of Europe. Faced with this scenario, the level of solvency for Italian companies remains almost unchanged.
“The EIOPA Stress Test highlights the ability of our companies to deal with even very severe stress situations. This is further confirmation of the excellent level of capitalization and the high reliability of Italian insurance companies”, commented the President of ANIA, Maria Bianca Farina.
