Considerations for Stress and Scenario Testing frameworks

In this briefing note, Milliman consultants Emma Hutchinson and Fred Vosvenieks provide high-level recommendations for insurance companies when developing or enhancing their Stress and Scenario Testing (SST) frameworks. It includes general principles, purpose of the SST framework, risks to be covered, tests to include, methodology and calibration decisions, weaknesses and limitations, and frequency, ownership and reporting.

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