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May 24, 2022

Stress tests in insurance would increase transparency

The insurance and private pensions companies estimate welcome the stress tests in the sector, because they would increase the transparency and the confidence in the system, according to the participants to Romania Financial Forum 2009, an even held yesterday at the National Bank of Romania, Agerpres informs. “A stress test is necessary because the effect of the current financial crisis is the unprecedented devaluation of the assets. These tests must analyze the level of solvency and the liquidity rate. One of the effects of the crisis is that we were confronted with a lower level of the sales in the first quarter 2009 – 5.9 per cent for the life insurance. The number of cancellations and redemptions has increased. Therefore a stress test is necessary for the life insurances,” ING Asigurari general director, Cornelia Coman, declared.

“We analyzed the degree of adequacy of the technical reserves and this is 2.7 times bigger than necessary. We analyzed the solvency and, besides CSSPP requirements, we analyzed also the economic capital. We saw that the capital exceeds the level that it should have, also from the point of view of solvency,” the ING representative said. “A stress test would be good for the increase of transparency and of the confidence in the market. Such tests are very good in order to help the financial system, which is confronted with the problem of the lack of confidence. And the tests should be made public,” the secretary general of the Association for the Privately Managed Pensions from Romania (APAPR), Mihai Bobocea, declared.

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