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. 176 IORPs from 19 countries participated in this third Europe-wide IORP stress test whose objective was to assess the resilience of IORPs to an adverse market scenario, and to analyse the second-round effects on the real economy and financial markets.

PensionsEurope is not surprised by the results. The 2019 stress test used the relatively challenging end-2018 as the reference date and applied a substantial shock on especially equity related investments on top of that. As some of the major stocks indices fell sharply in December 2018 – suffering one of the worst declines since the 2008 financial crisis  – with an additional shock in the stress scenario had a significant impact on the results.