Stress Testing for Insurance Companies Training Course

Course Overview

Learning Objectives

• By the end of the course, participants will be able to:
• Analyze the fundamental principles and objectives of stress testing within insurance companies.
• Identify material financial, insurance, market, credit, liquidity, operational, and emerging risk exposures.
• Design severe but plausible stress scenarios relevant to different insurance portfolios.
• Assess the impact of adverse scenarios on assets, liabilities, technical provisions, earnings, and capital.
• Evaluate the sensitivity of solvency and capital adequacy measures to key risk drivers.
• Apply scenario analysis, sensitivity testing, and reverse stress testing techniques.
• Assess the impact of catastrophe, underwriting, mortality, longevity, lapse, and claims-related stresses.
• Evaluate market and credit risk shocks and their impact on investment portfolios.
• Analyze liquidity stress and the ability of insurers to meet obligations under adverse conditions.
• Evaluate reinsurance and counterparty risks under stressed scenarios.
• Develop effective stress-testing governance, documentation, validation, and reporting frameworks.
• Translate stress-testing results into capital, risk management, and strategic management actions.

Who Should Attend

Learning Outcomes

• Upon completion of this course, participants will be able to:
• Explain the role of stress testing within an insurer's enterprise risk management framework.
• Identify the principal risk factors that can threaten an insurance company's financial resilience.
• Develop relevant and appropriately severe stress scenarios.
• Evaluate the effects of market, credit, liquidity, and underwriting shocks.
• Assess catastrophe, mortality, longevity, lapse, and claims-related stresses.
• Analyze the impact of interest-rate and inflation shocks on insurance balance sheets.
• Evaluate investment portfolio vulnerabilities under adverse market conditions.
• Assess the impact of reinsurance and counterparty deterioration.
• Interpret stress-testing results and identify key areas of vulnerability.
• Apply reverse stress testing to identify scenarios that could threaten solvency or viability.
• Evaluate capital adequacy and solvency resilience under stressed conditions.
• Develop appropriate management actions in response to identified vulnerabilities.
• Strengthen stress-testing governance, documentation, validation, and controls.
• Communicate stress-testing results effectively to senior management and decision-makers.
• Integrate stress testing into capital planning, risk appetite, and strategic decision-making.

Course Outline