Challenge

A managing agent at Lloyd's approached Crowe UK with the aim of enhancing the sophistication of their scenario testing as part of their efforts to strengthen operational resilience.

While the managing agent had already undertaken some basic testing, it had struggled to derive meaningful insights from previous exercises. Our client sought assistance in conducting simulation-style testing while ensuring that the effort invested would provide commensurate value.

Activities

• Collaborated with the managing agent to review recent regulatory feedback and clarify expectations for scenario testing and its short- and long-term testing plans.
• Expanded and refined the scenario library, ensuring scenarios reflected both regulatory priorities and business realities, aligning discrete areas of testing.
• Developed a comprehensive, cross-functional testing plan tailored to our client’s specific risk landscape. This testing plan joined the dots between related areas of testing, including operational resilience and workaround testing, disaster recovery and security testing, business continuity, and outsourcing. 
• Planned and facilitated simulation-style testing sessions, covering their claims services, including FNOL and payments, and involving third parties where appropriate to deliver realistic and challenging scenarios. 
• Led a focused exercise on a new pricing system functionality developed as a workaround identified during earlier testing. 
• Documented outcomes and developed a remediation plan with agreed actions to address vulnerabilities and improve response effectiveness. Subsequently, outputs were incorporated into our client's self-assessment report.

Outcome