This statement provides further information on the dynamic general insurance stress test that the PRA intends to run in 2025. 

Statement

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In October 2023 the PRA announced its intention to run a DyGIST in 2025 [PRA statement on the dynamic general insurance stress test in 2025 | Bank of England]. The objectives of the DyGIST are to: (i) assess the UK general insurance sector’s solvency and liquidity resilience to a specific adverse scenario; (ii) assess the effectiveness of insurers’ risk management and management actions following an adverse scenario; and (iii) inform the PRA’s supervisory response following a market-wide adverse scenario. The PRA also indicated that it would provide more details on the design, timetable and participation of the test, which are set out in this statement.

Industry workshops

Between November 2023 and February 2024, the PRA engaged with the industry through a series of workshops for the relevant trade bodies (the Association of British Insurers,

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