UK Insurers Urge BoE to Revise Stress Test
British insurers are asking regulators to reconsider their live crisis simulation. Firms report heavy reporting demands and unrealistic scenarios during the recent test.
United Kingdom insurers are pressing regulators to overhaul a live crisis simulation that pushed firms to their limits with heavy reporting demands. The Prudential Regulation Authority's inaugural dynamic stress test subjected participating firms to successive disaster scenarios over three weeks in May. The exercise evaluates industry resilience, but market participants warn that the intense operational burden makes frequent repetition impractical.
