The PRA has written to the largest PRA-regulated life and general insurers to set out the high-level scope for the 2022 Insurance Stress Test (IST) exercise. For life insurers, the IST will focus primarily on economic stresses and for general insurers the exercise will focus on natural catastrophe perils and cyber underwriting risk. The letter also sets out the timeline for the IST as follows:
- Request for technical input: structure of scenarios (Mid-Sept – Nov 2021)
- Request for technical input: parameters for chosen scenarios (Jan – Mar 2022)
- Launch IST 2022 (Mid-May 2022)
- Industry roundtable (Jul 2022)
- Firm submission (Mid-Sept 2022)
- Feedback to industry (Dec 2022)