It is a regulatory requirement – and good practice - for insurance businesses to carry out stress testing, reverse stress testing and scenario analysis. The challenge, in part, is to create meaningful test scenarios that highlight less-considered as well as known risks and generate appropriate management actions. In addition, evaluation needs to be efficient and consistent across an organisation or group. This can be especially difficult for larger, more complex businesses which need to tailor scenarios to a diverse range of functions in multiple countries.
We can support the development and implementation of a testing framework and scenarios, locally or globally. We can also help translate identified issues into corrective action plans and recommend ways to present results to regulators.