Scenario Testing Our Mutual Future

In a world forever changed by the COVID–19 pandemic, mutual property/casualty insurance companies of all sizes are facing increasing pressure from stakeholders to consider the impact of systemic scenario testing on their financial forecasts. Understanding how the many different scenario tests can impact their financial performance is critical to their long–term strength and stability, which, in turn, is critical to each mutual company’s ability to serve its policyholders.

In support of this consideration, NAMIC and Guy Carpenter have collaborated to develop a series of reports designed to measure the exposure of each U.S. property/casualty (P/C) insurance company to a set of pre–defined operating environments. From 2021 through 2023, the two will investigate how various scenarios, expected and unexpected, will impact mutual companies.