The European Insurance and Occupational Pensions Authority, or EIOPA, on May 14 launched its fourth stress test of the European insurance sector, which will assess for the first time participants' exposure to cyberrisk.
The stress scenarios also include market and insurance-specific risks, including a natural catastrophe scenario.
The stress test aims to assess the vulnerabilities of the European insurance industry to the specific scenarios; raise awareness of potential threats to financial stability posed by the region's insurance sector; and to increase transparency by requesting voluntary disclosure of individual results by the participants.
EIOPA said 42 European insurance groups will participate in the exercise, representing about 78% of the total European market coverage. The participants will have to submit their results to the national competent authorities by Aug. 16, with the publication of the stress test results planned for January 2019.