The UK’s Prudential Regulation Authority’s (PRA) planned stress test of UK insurers does not go far enough, according to Hiscox chairman Robert Childs.
The stress test is designed to allow the regulator to assess insurers’ resilience and monitor their risk and solvency assessments.
Childs said: “Although in our industry we regularly model the impact of a wide range of serious catastrophes, we fully support the PRA’s new stress test to show how insurers would cope in the event of a range of extreme scenarios.
“However, I feel this does not go far enough, and that there needs to be a detailed practical dry run of how a serious catastrophe may play out involving all London market players, including our supervisors at the PRA and Lloyd’s.”
