Article

Stress and Scenario Testing

Stress, scenario and reverse testing are methods widely used to assess and quantify uncertainty in an insurer's future profits, own funds, capital and solvency coverage.

This leaflet summarises the stress, scenario and reverse stress tests typically included in non-life insurers’ ORSA projections.

Key Take-outs:

  • Stress testing
  • Scenario analysis
  • Reverse stress testing

Stress and Scenario Test Infographic

    
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