EIOPA IORP Stress Test results not surprising - PensionsEurope ready to co-operate with EIOPA to further develop cash flow analysis
EIOPA published the results of 2019 IORP stress test on 17 December 2019, and you can read PensionsEurope press release here. The stress test results confirm IORPs’ countercyclical behaviour. It is important that legislation continues to allow that, as IORPs have an important role in stabilising financial markets.
PensionsEurope is happy that EIOPA also used the cash flow analysis approach to assess the financial position of IORPs, as it sheds new and more relevant light on the financial position of DB and hybrid schemes. It gives more insight in the timing and size of cash flows and can be related to economic indicators such as GDP and consumption.
PensionsEurope is willing and ready to provide its expertise to EIOPA to further define its stress testing methodology in order to address all specificities of the IORPs sector.