United Kingdom

Solvency ll: Stress and scenario testing 

Stress and scenario testing helps answer the important question of whether a business has enough capital and financial resilience, to support future business plans. It also addresses what management actions are needed to reduce their impact.
Solvency ll: Stress and scenario testing

Valuable insights

 

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.

 

How we can help

 

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.

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Contact

Trevor Jones

Trevor Jones

Partner

KPMG in the UK

 

020 7311 5874

Email Trevor