After claiming the title in 2021, Moody's Analytics took the crown again this year as it supported insurers' stress testing requirements.

In the past 12 months these have included requirements related to regulatory stress tests, own risk and solvency assessments, IFRS 17, economic-narrative based stresses, climate change stresses and other bespoke requirements.

Using a combination of economic content, stochastic, and actuarial modelling software, the firm says it enables insurers to implement transparent, repeatable, and auditable stress testing processes on fast timescales.

"Our solution takes advantage of many years of experience in scenario generation, it combines state-of-the-art calibration tools, process management, and validation capability with best-practice scenario generation in one solution," says Jack Cheyne, senior director for product management at Moody's Analytics.

Cheyne explains Moody's Analytics offers a range of "climate pathway calibration services" as well as a stress testing framework to support the use of climate change scenarios and related assumptions in real-world projections.

"This also allows customers to leverage a range of economic inputs and climate assumption to produce scenario set content covering a full range of risk factor and outputs that are required to support their existing asset liability management or stress testing systems/process."

Cheyne pinpoints high inflation as a key challenge the firm has supported clients with during the last year.

He says "delivering stress testing calibrations for different expected paths of inflation in order to support firms looking to understand the sensitivities of their key capital metrics," has been a key consideration in the last year.

"We also provided additional beta-calibrations to allow insurers to test alternative assumptions and parameterisation of the inflation model to support their discussions with internal and external stakeholders."