Eiopa stress test highlights UK reliance on matching adjustment
Tests reveal how unwelcome any watering down of key measure would be
Life insurance stress test results released last week make uncomfortable reading for those who fear Solvency II's matching adjustment might be watered down in future.
The results of the European Union-wide tests, published by the European Insurance and Occupational Pensions Authority (Eiopa) on December 15, show the true value of long-term guarantee measures such as the matching adjustment (MA) to UK insurers, while the same matching adjustment yields few benefits to continental insurers.
The
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