UK Insurers Push Back Against Stress Test Overload
Britain's insurance industry is pushing back against the Bank of England's latest stress test, known as DyGIST. The dynamic test, which ran over three weeks in May, subjected insurers to a series of crises including a US West Coast earthquake, a Gulf of Mexico hurricane, and a cyber event.
Nafisah Hussain, director of public policy at the International Underwriting Association, warned that the accumulation of scenarios was 'very unlikely' in such a short timeframe. She also cautioned that running similar tests regularly might be 'overly burdensome' for regulators to interpret.
Industry sources revealed that the tests put significant pressure on internal resources, with some firms forced to bring in technical experts at short notice and cancel staff leave. The regulator has indicated it will publish its findings by year-end.