The PRA has published the letter sent to participating firms Insurance Stress Test 2019 and Covid-19 stress testing providing feedback for general and life insurers. The announcement of the test was in June 2019 when it was noted that only the largest regulated life (and only those with a significant exposure to annuity products) and general insurers were in scope for this test.
The letter contains separate annexes relating to general and life insurers.
The next concurrent insurance stress test will occur in 2022. The PRA intends to engage with the general insurance industry to develop a cyber-scenario in time for the 2022 insurance stress test exercise. A climate scenario exercise has been postponed until at least mid-2021.
David Gray, Consultant Actuary, comments: “This feedback may be useful when considering stresses to be considered in the ORSA for OAC's insurance clients.
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