Resiliency tests relaxed

Professional Adviser
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Formula has been adjusted so that daily market falls do not have such an adverse affect

The FSA has relaxed resiliency tests for life insurers at a time when an increasing number are boosting their free asset ratios by taking future investment returns into account. Recent falls in stock markets have highlighted problems with the resilience test formula, a measure of how well an insurance company can survive fluctuations in the UK equity market and still meet its liabilities, according to the UK regulator. This has been adjusted so that individual daily market falls do not have such an adverse effect on the apparent ability of an insurer to meet its liabilities. The FSA s...

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