PRA: “Dear CEO” letter: 015 GI stress test

PRA has published the text of a letter it has sent to participating firms in the 2015 GI stress test providing feedback on the exercise. PRA observed that, in aggregate, the sample insurers were resilient against specific market-wide stresses and that results from the complex stress tests (such as liability and cyber stresses) showed that common terminology and a common framework for the assessment of exposure was required before a wider assessment of firm and sector resilience could be determined on a consistent basis.