Norway: Financial Sector Assessment Program-Technical Note-Insurance Sector Stress Tests

September 17, 2015

Preview Citation

Format: Chicago

Norway: Financial Sector Assessment Program-Technical Note-Insurance Sector Stress Tests, (USA: International Monetary Fund, 2015) accessed November 23, 2024

Summary

This Technical Note presents key findings of insurance sector stress tests on Norway. Although the financial condition of insurance companies under Solvency I has generally been sound, insurers face major challenges going forward, thus 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: 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

Publication Details

Pages:

37
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2015/255
Stock No:

1NOREA2015006
ISBN:

9781513576497
ISSN:

1934-7685

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