Media Release 26 May 2026

IUA MEMBERS TAKE PART IN DYNAMIC GENERAL INSURANCE STRESS TEST

A live stress test exercise is probing the capabilities of the London company market, the International Underwriting Association has said. The Dynamic General Insurance Stress Test (DyGIST) is run by the Prudential Regulation Authority to assess the response of insurers to a fast-moving, complex and evolving event. It examines crisis management arrangements, focussing on both balance sheet impacts and decision-making protocols.

The current DyGIST exercise is taking place throughout the month of May and involves several scenarios: a systemic cyber attack, a severe global financial downturn, major earthquake and hurricane events in the US and a large UK windstorm. There are also scenarios to test reinsurance resilience.

Nafisah Hussain, Director of Public Policy at the IUA, said: “What makes the DyGIST exercise different is that it is a genuinely live test. Both the PRA team and the London Market firms taking part were not aware of the test scenarios in advance and are responding in real time. It is a rare and valuable way to test the whole insurance system.

“The scenarios themselves are deliberately stretching – a combination of cyber and natural catastrophes that are unlikely to occur simultaneously but are still within the bounds of possibility. Stress tests are designed to examine the extreme boundaries of probability and this one does exactly that.

“As well as putting IUA members on the spot, an important benefit of the exercise is to see the regulatory authority’s own operational processes tested under pressure. The PRA’s responsiveness so far has been helpful to companies working through a demanding operation.”

The IUA will be working with members and the PRA to understand lessons learned from the exercise after its conclusion.

Ends

Contact:
Scott Farley
Director of Communications
International Underwriting Association
Tel: 0207 617 4449
Mobile: 07921 699 218
E-mail: [email protected]

Notes to Editors:

About the IUA
The International Underwriting Association of London (IUA) is the representative body for companies in London providing international and wholesale insurance and reinsurance coverage. Its mission statement is to secure an optimal trading environment for London insurance companies.