Stress Testing by Insurers

IAIS guidance paper on stress testing in context of capital adequacy and solvency regimes

International Association of Insurance Supervisors guidance paper discusses: i) role stress tests should play in an insurer's overall risk management framework, and how such tests assist the insurer to maintain sufficient capital adequacy and solvency; ii) role stress tests play in assisting supervisors to undertake their role in assessing risks faced by insurers; iii) how supervisors can use stress testing to assess prudential strength of individual insurers; iv) supervisory considerations, such as the corporate governance regime, that need to surround an insurer's stress testing environment; and v) various factors that need to be considered in designing and undertaking stress tests, including a discussion of possible modelling techniques that can be used. 

Publisher: Global Standard-Setting Bodies     Release date: Oct 2003    

Type: Guideline

Topics: Stress-testing, Capital adequacy, Risk management, Corporate governance

Sectors: Insurance