NBB Insurance Stress Test 2021


Stress testing is an appropriate tool to identify vulnerabilities of the financial system and to assess the potential impact of risks on the stability of the financial system in general and the insurance sector more specifically. Stress testing also helps to identify those undertakings that may pose a risk to the stability of the financial system or the insurance sector. The National Bank of Belgium (NBB) can, after the analysis of the stress test results, issue recommendations to be implemented by the insurance undertakings in order to contribute to the stability of the financial system.

In 2021, the Belgian insurance sector is subject to a stress test consisting of two scenarios.

The first scenario “low yield” was developed by the NBB. Low Yield scenario assumes a persistent low interest rate environment and combines stressed risk-free rate curve with a new calibration for the SCR interest rate risk as proposed in the Opinion on the 2020 review of Solvency II (EIOPA-20/749) published by EIOPA on the 17 December 2020. All companies wishing to apply for exemption from the compulsory contribution to the provision on flashing lights must participate in the NBB Insurance Stress Test 2020 - Low Yield Scenario.

The second scenario of the NBB Insurance Stress Test 2021 “EIOPA scenario” is based on the EIOPA Stress Test 2021. The scenario of this stress test measures the impact of an extended Covid-19 scenario in an environment of lower interest rates for a longer period. The NBB stress test is limited to the capital component of EIOPA’s ST exercise in order to reduce the burden on Belgian insurance companies. The part of the EIOPA stress test covering liquidity does not apply to the NBB 2021 Insurance stress test. The EIOPA scenario is applied to a significant part of the Belgian insurance market.




8 April 2021

Pre-launch to participants: Transmission to the participants of technical specifications, technical information, and templates. The low yield documents will be available on the Bank's website on April 8, 2021. The documents related to the EIOPA scenario will be sent by mail to the companies concerned on April 13, 2021.

15 April – 10 May 2021

Questions and Answers process

EIOPA & NBB questions and answers process 

19 April 2021, 14h00

Online information session NBB

7 May 2021

Official launch of the NBB Insurance Stress Test 2021 (OneGate)

8 April – 11 June 2021

Pre-validation (Eventual interaction with participants concerning the & approval of simplifications used in the context of stress test)

13 August 2021 Submission of the results
August/September 2021 Validation (resubmission) and analysis of the results
December 2021 Publication of EIOPA & NBB stress test results

*Updated 06/04/2021

Questions & Answers