Finance
Bank of England to start next life insurance stress test in January 2028
Published by Global Banking & Finance Review®
Posted on February 27, 2026
1 min readLast updated: February 27, 2026
Quick Summary
The BoE’s Prudential Regulation Authority (PRA) will launch its next life insurance sector stress test in January 2028, after consulting insurers and market participants through 2026 and finalising the framework in Q4 2026. The last exercise (LIST 2025) found the sector resilient under a severe mark
Bank of England’s PRA to launch next life insurance stress test in Jan 2028
Regulatory update
Life insurance stress test timeline
LONDON, Feb 27 (Reuters) - The Bank of England's Prudential Regulation Authority on Friday said it would launch the next life insurance stress test exercise in January 2028.
Consultation and final plans
The regulator said it would consult firms and market participants through 2026 and aimed to set out final plans, including any revisions to scope or methods, in the fourth quarter of 2026.
Reporting details
(Reporting by William James, writing by Sam Tabahriti)
Key Takeaways
- •Timing signals a slower cadence than recent cycles: the PRA launched LIST 2025 in January 2025 and published results in November 2025, so a January 2028 start implies a multi-year gap to allow for design consultation and method changes. (bankofengland.co.uk)
- •Stress tests are being reset in a post-Solvency UK environment: LIST 2025 was the first conducted under the Solvency UK regime implemented in 2024, and included new transparency via individual-firm disclosure for the core scenario. (bankofengland.co.uk)
- •Regulatory focus is widening beyond capital to liquidity and risk management: the PRA has flagged insurer liquidity data gaps and proposed tougher liquidity reporting for large life insurers, adding pressure for firms to strengthen stress-testing and contingency planning ahead of the next sector exercise. (ft.com)
References
Frequently Asked Questions about Bank of England to start next life insurance stress test in January 2028
1When will the next life insurance stress test start?
The Prudential Regulation Authority said it will launch the exercise in January 2028.
2Which Bank of England body is running the stress test?
The Bank of England’s Prudential Regulation Authority (PRA) will run the next life insurance stress test.
3What is the PRA’s timeline for consultation on the stress test?
The regulator said it would consult firms and market participants through 2026.
4When will the PRA set out final plans for the stress test?
The PRA aims to set out final plans, including any revisions to scope or methods, in the fourth quarter of 2026.
