Implications of the PRA's 2025 life insurance stress test

A regulatory shift

clock • 4 min read

Sheikh Yasir, head of insurance capital solutions, 4most, discusses the impact of the Prudential Regulation Authority’s (PRA’s) changes to its 2025 life insurance stress test (LIST).

The PRA's decision to publish the results of its 2025 LIST at the individual company level marks a significant departure from the typical practice of reporting outcomes at the aggregate sector level. Historically, individual firms could benchmark their performance against competitors without the risks associated with public exposure. However, while firms are being challenged, the onus is also on the PRA to ensure clear communication that avoids misinterpretation of the results and prevents undue market influence. With the PRA planning to launch LIST 2025 and publish the final scenario...

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