The scenarios used for forward-looking assessments mainly focused on financial stress given the
preponderance of financial risk for Crédit Agricole  Assurances group, and also considered risks not
captured by the standard formula (sovereign stress,  reputation stress, etc.). Their aim is to analyse the
consequences of challenging conditions such as a si gnificant drop in equities, a correction in the rea l
estate market, a widening of Italy and France sprea ds, a persistence of low interest rates, a rise in
rates associated with repurchase requests on life i nsurance contracts or an increase in the effects 

C
D
E
A
B
CREDIT AGRICOLE ASSURANCES S.A.  SFCR 2018  32

related to annual termination of loan insurance int roduced by the Bourquin law. For each of these
scenarios, business assumptions were adjusted to ta ke account of probable policyholder behaviour.
This work provides quantitative and qualitative inf ormation about the group's funding requirements,
which is then used to determine any funding operati ons that would be required were the scenarios to
materialise (commented on in section E. Capital Man agement). It also helps to identify action drivers
should one of the more adverse scenarios develop, t he most adverse for the solvency plan being the
scenario of tension on sovereigns: shock linked to overheating of the US economy and a social crisis
in France, with widening spreads on Italian and Fre nch sovereigns coupled with a rise in equity and
real estate markets and customer disinterest for li fe insurance.
B.4 Internal control system
Internal controls are designed to monitor and contr ol operations and risks of all kinds to which the
entity is exposed to provide reasonable assurance t hat the entity operates effectively and efficiently
and complies with the applicable laws and regulatio ns.

### Language ###
English

### Assessment ###
A user might want to know what is considered the worst scenario for solvency according to the text.

### Query ###
What is the most dangerous scenario for an insurance company's solvency?
What is the most dangerous scenario for an insurance company's solvency?