Given shifting regulatory frameworks, macroeconomic and geopolitical volatility, many insurers are exploring new ways of stress testing in these situations.
The key aspects around this are the regulatory changes that will require operational guidance. Some believe they could expose an insurer to new risks.
One of the main concerns in this area is that of liquidity risk and whether insurers will keep enough cash on hand if ways of measuring and testing are changed.
This is all happening as the Artificial Intelligence (AI) revolution gets underway.
This topic will be covered at Insurance Investor Live | Europe in a session “Updating approaches to stress testing: are liquidity and financial risk plans ready for seismic shocks?”.
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