Norway: Financial Sector Assessment Program-Technical Note-Insurance Sector Stress Tests
IMF Staff Country Reports, September 17, 2015
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- Canonical URL
- Norway: Financial Sector Assessment Program-Technical Note-Insurance Sector Stress Tests
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Bibliographic details
- Published: September 17, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513576497.002
Executive summary and main findings
- The Technical Note presents key findings of insurance sector stress tests on Norway.
- Under Solvency I, the financial condition of insurance companies has generally been sound.
- Insurers face major challenges going forward, placing an important premium on sound risk management and effective oversight by supervisors.
- The stress tests (under Solvency II) confirm that life insurers are vulnerable to severe shocks.
- The stress tests pointed to the high sensitivity of life insurers to market risks such as equity prices, real estate prices, and credit spreads.
- The risks to insurers are particularly pronounced if interest rates fall further from the current levels.
Subject areas and keywords (as presented)
- Subjects: Financial institutions; Financial sector policy and analysis; Financial stability assessment; Insurance; Insurance companies; Solvency; Stress testing
- Keywords: biometrical risk assumption, buffer capital, capital, capital holding, capital holding of the insurance undertaking, capital needs, capital requirement, CR, Financial stability assessment, Global, health underwriting, Insurance, Insurance companies, insurance liability risk, ISCR, market, Norway, regulation, risk, risk diversification, Solvency, Solvency II, Solvency II light, Solvency indicator, Stress testing, underwriting
Content in this bundle
- Executive Summary and Recommendations