The Prudential Regulation Authority’s (PRA’s) Dynamic General Insurance Stress Test (DyGIST) marks a new chapter in supervisory expectations for the general insurance (GI) sector.
In line with previous stress tests, it will represent a severe but plausible scenario running to test GI solvency and liquidity. Unlike previous rounds of stress testing DyGIST is a live simulation designed to test also real‑world crisis‑management capabilities. DyGIST will unfold mainly over three weeks (5 to 27 of May) where new information will be released weekly, requiring participating firms to respond as if managing an actual crisis.
DyGIST’s purpose goes beyond quantifying financial impacts. It also evaluates insurers’ wider response capabilities – decision making, escalation routes, and cross functional coordination in stressed conditions. Participants must provide rapid assessments, engage with supervisory contacts, and follow their established management action frameworks. This is not a new theme for the PRA, which has been emphasising resilience for some time. You can read Crowe’s thoughts on overcoming obstacles to effective scenario testing.
The scenario elements may include volatile macroeconomic conditions, a catastrophe component, and cyber related threats placing multifaceted pressure on firms’ risk, actuarial, exposure management, reinsurance, finance, and operations teams.
The PRA has invited a number of GI, including Lloyd’s of London which will be involving large Managing Agents to provide evidence.
Why DyGIST matters?
Scenario testing has the potential of shaping many business decisions and adding value as shown in one of our recent articles. DyGIST will test indirectly the robustness of existing ORSA scenarios, crisis‑management and communication plans, and recovery and resolution frameworks. It also strengthens internal alignment, particularly at board and executive levels, by highlighting the importance of timely, well‑governed decisions under uncertainty.
DyGIST ultimately allows insurers to build maturity in stress interpretation, supervisory engagement, and risk mitigation planning skills increasingly vital in an environment of escalating risk complexity.
Turning stress into strategic value
Crowe offers a practical and tailored solution to help insurers maximise the value from participation in DyGIST.
1. Strengthening readiness before the exercise
Crowe supports firms in assessing and enhancing their preparedness across key dimensions:
- Review of crisis management plans, ORSA scenarios, management actions, and operational resilience frameworks.
- Identification of resource needs, including senior decision makers and cross functional specialists.
2. Practical support during the live exercise
Although most work would be completed most effectively by internal teams, Crowe can provide targeted assistance that meaningfully reduces pressure:
- Backfilling critical roles so internal specialists can focus on PRA critical deliverables.
- Aggregating and quality checking reports to ensure they are coherent, consistent, and submission ready.
- Acting as an independent sounding board to test messaging and management actions through a lens of logic, realism, and supervisory credibility.
3. Proven expertise in stress testing exercises
Life Insurance Stress Test has demonstrated our ability to integrate modelling expertise, regulatory insight, and strong project governance to deliver resilient, future proof solutions.
DyGIST is more than a regulatory exercise, it is a strategic catalyst for improving crisis readiness, governance, and resilience. With Crowe’s practical, evidence based support, insurers can navigate DyGIST confidently transforming regulatory pressure into operational strength and long term value.
If you have any further questions, please reach out below or to your usual Crowe contact.
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