Stressed score VS. Nat Cat Stress Test

AndrewLAndrewL
in BCAR.Cat

Hi,

After reading the wiki, this is my understanding. Are these correct?

  1. Stress Score is not equal to Nat Cat Stress Test. Stressed Score is based on Natural Cat Stress Test and is required due to remaining CAT exposure aftershocks.
  2. Purpose of Stressed score is to evaluate insurer's ability to operate after catastrophe.
  3. Purpose of Nat Cat Stress test is test FC of insurer after 2 Cat events.

Thanks

Comments

  • grahamgraham
    1. Yes and yes.
    2. Yes.
    3. Yes, since the "normal" BCAR now includes a catastrophe component.
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