Nos derniers articles

This study examines how European insurance companies influence mutual fund stability, particularly during periods of significant net outflows. Utilizing Solvency II and Lipper/Eikon data, the study reveals that insurers exhibit contrarian trading behavior, purchasing fund shares when other investors divest, especially in fixed-income funds. This behavior is more pronounced for affiliated funds. The paper also finds that insurers' financial health, indicated by solvency ratios, impacts their ability to act as contrarian traders; lower solvency ratios correlate with fewer purchases during outflows. Funds with insurer investments demonstrate enhanced resilience, exhibiting lower flow-to-performance sensitivity and reduced flow volatility. The findings suggest insurers can mitigate investor runs, but their stabilizing influence may lessen under systemic stress affecting their own financial health.

The report underscores the robustness of Europe’s insurance, reinsurance, and pension sectors despite a volatile macroeconomic environment. Strong capital positions persist, with median Solvency II ratios slightly down but stable. Premium growth surged, with non-life up 8.2% and life at 13.8%. Profitability improved, with median return on assets at 0.7%. However, it points out that risks from exchange rate volatility, elevated interest rates, geopolitical tensions, and cyber threats require vigilant monitoring. It also notes significant US equity exposure, urging caution amid potential market corrections.

EIOPA has published the results of its first EU-coordinated mystery shopping exercise, assessing the sales process for insurance-based investment products (IBIPs) across eight EU member states. While distributors often provided relevant information, areas for improvement were identified in disclosure, transparency, and consumer outcomes. Key findings include inadequate provision of cost information and limited consideration of sustainability preferences. EIOPA Chair Petra Hielkema emphasized the need to explore a more outcome-oriented sales approach, focusing on simple and transparent products that offer value for consumers.

The BCBS has introduced a voluntary framework for jurisdictions to disclose climate-related financial risks. This framework blends qualitative and quantitative data for a comprehensive view of bank exposures, while offering flexibility due to evolving data. It encourages a holistic approach to understanding disclosure strengths and weaknesses. Implementation is left to individual jurisdictions, and the Committee will monitor developments to update the framework as needed.

In 2024, despite global challenges like AI advancements, elections, geopolitical instability, climate events, and cyber threats, EIOPA focused on safeguarding the public interest in the European financial system. They successfully executed their work program, emphasizing sustainable insurance/pensions, digital transformation, consistent supervision, high-quality advice, and financial stability. EIOPA also initiated regulatory simplification, stressing prudence to maintain a robust framework, and will collaborate with the European Commission to enhance the Savings and Investment Union. Their ongoing commitment is to ensure a robust, resilient, and well-regulated industry for all stakeholders.

Insurance Europe calls on the EU to simplify the Retail Investment Strategy (RIS) to improve consumer access to investment, protection, and advice. Their recommendations include streamlining the "value for money" assessment by allowing supervisors to use benchmarks without requiring peer grouping by insurers and avoiding new reporting. They also advocate for a smoother consumer journey by shortening suitability tests and removing duplicative inducement tests. Finally, they propose reducing information overload by focusing on key disclosures and avoiding overly technical cost details. These simplifications, they argue, will boost investment and EU competitiveness.

Natural disasters drive insurance premium increases in affected areas for three years and cause delayed, smaller rises in unaffected areas. Insurers also adjust rejection rates, particularly in low-income regions. Financial constraints influence cost distribution, raising concerns about equity and affordability as climate risks grow and insurers adapt pricing strategies.