Update 16 August 2019: The PRA published updated Life Insurance Stress Test 2019 and General Insurance Stress Test 2019 templates. Information on the updates is outlined under the version control tabs in each template.
Following the request for technical input in a letter to firms on 11 April 2019, the PRA has launched its biennial insurance stress test and is asking the largest regulated life and general insurers to provide information about the impact of a range of stress tests on their business. For general insurers, the PRA is coordinating some of the scenarios with the Bermuda Monetary Authority.
In addition, the stress test includes an exploratory exercise in relation to cyber underwriting and climate change. The set of climate scenarios explores the impacts to both firms' liabilities and investments stemming from physical and transition risks.
The PRA will publish a summary of the overall results but no individual firm results will be made public.
Insurers that have not been asked to participate in the stress test may find the materials useful to inform their own stress testing exercises.
The deadline for submission is as follows:
- Sections A and B: 5pm, Monday 30 September 2019
- Section C: 5pm, Thursday 31 October 2019
Questions about the Insurance Stress Test can be sent to IST2019@bankofengland.co.uk.