UK - Testing importance of reinsurance capital
Friday, 04 29 2016, Category: Insurance and Reinsurance, Country: United Kingdom
Results from a series of stress tests set by a division of the Bank of England, the Prudential Regulation Authority (PRA), has underlined the importance of diversified reinsurance capital to the 26 largest UK general insurers.
During 2015 the PRA called on some of the UK’s largest general insurers to participate in stress tests that would test their capital adequacy, reserves, and reinsurance arrangements under worst-case scenario situations.
This included three major hurricanes within a year, a coordinated multi-city terror attack, a motor liability shock, European windstorms and floods, and a major economic shock scenario.