Context
A live stress test exercise is probing the capabilities of the London company market. The Dynamic General Insurance Stress Test (DyGIST) is run by the Prudential Regulation Authority (PRA) to assess the response of insurers to a fast-moving, complex and evolving event. It examines crisis management arrangements, focussing on both balance sheet impacts and decision-making protocols.
Key points to note and next actions
- The current DyGIST exercise is taking place throughout the month of May and involves several scenarios:
- a systemic cyber attack;
- a severe global financial downturn;
- major earthquake and hurricane events in the US; and
- a large UK windstorm.
- There are also scenarios to test reinsurance resilience.
- The IUA will be working with members and the PRA to understand lessons learned from the exercise after its conclusion.