Testing to destruction

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The UK’s Financial Services Authority (FSA) requires insurers to look disaster in the eye and examine how prepared they are to avoid it. Called reverse stress testing, the idea is to bring the nightmares that might keep senior executives awake at night into the cold light of day and look at what steps insurers could take to survive should the dark dreams become a reality.

“We want to understand what firms think about potential weaknesses in their business models and, in particular, how they are

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