Transcend launches new collateral stress testing service
03 February 2026 UK and US
Image: Khadiza/stock.adobe.com
Transcend has launched a specialised service designed to help UK insurance firms meet the Prudential Regulation Authority鈥檚 (PRA) new collateral stress testing requirements outlined in CP19/24.
The PRA鈥檚 proposed rules introduce stricter requirements for understanding, monitoring, and projecting collateral needs under stressed market conditions.
With compliance required by 30 September 2026, Transcend says insurers are facing significant data, modelling, and operational challenges that most existing systems are not built to handle.
Transcend鈥檚 new service is designed to provide insurers a complete, purpose-built framework to satisfy these requirements without adding strain to internal systems or teams.
The service combines Transcend鈥檚 data integration and optimisation engine with targeted workflows supporting the PRA鈥檚 expectations on scenario design, collateral projection, and liquidity impacts.
Bimal Kadikar, CEO of Transcend, states: 鈥淚nsurance firms are under pressure to comply with evolving regulatory standards while maintaining increasingly complex market-driven collateral demands.
鈥淥ur goal is to give insurers a fast, reliable way to meet the PRA鈥檚 expectations while improving their visibility and control over collateral under stress.鈥�
The service will provide key capabilities such as automated collection, validation, and enrichment of collateral.
In addition, the service offers exposure data across booking systems, custodians, and investment portfolios; scenario-based modeling aligned to the PRA鈥檚 expectations in CP19/24; forward-looking projections of collateral needs and liquidity impacts under stress; and optional integration with Transcend鈥檚 enterprise collateral optimisation platform.
Todd Hodgin, chief product officer at Transcend, says: 鈥淩egulation is tightening, timelines are short, and insurers need a partner fluent in both the technical and operational realities of these complex new requirements.
鈥淭his service gives firms an immediate path to compliance while laying the groundwork for broader, long-term efficiency gains.鈥�
The solution is designed to meet UK PRA requirements, while also meeting the needs of all global insurers who require a clearer view of how their collateral needs shift under market stress.
This level of insight allows insurers to make faster, better-informed decisions about liquidity, risk management, and operational readiness.
The PRA鈥檚 proposed rules introduce stricter requirements for understanding, monitoring, and projecting collateral needs under stressed market conditions.
With compliance required by 30 September 2026, Transcend says insurers are facing significant data, modelling, and operational challenges that most existing systems are not built to handle.
Transcend鈥檚 new service is designed to provide insurers a complete, purpose-built framework to satisfy these requirements without adding strain to internal systems or teams.
The service combines Transcend鈥檚 data integration and optimisation engine with targeted workflows supporting the PRA鈥檚 expectations on scenario design, collateral projection, and liquidity impacts.
Bimal Kadikar, CEO of Transcend, states: 鈥淚nsurance firms are under pressure to comply with evolving regulatory standards while maintaining increasingly complex market-driven collateral demands.
鈥淥ur goal is to give insurers a fast, reliable way to meet the PRA鈥檚 expectations while improving their visibility and control over collateral under stress.鈥�
The service will provide key capabilities such as automated collection, validation, and enrichment of collateral.
In addition, the service offers exposure data across booking systems, custodians, and investment portfolios; scenario-based modeling aligned to the PRA鈥檚 expectations in CP19/24; forward-looking projections of collateral needs and liquidity impacts under stress; and optional integration with Transcend鈥檚 enterprise collateral optimisation platform.
Todd Hodgin, chief product officer at Transcend, says: 鈥淩egulation is tightening, timelines are short, and insurers need a partner fluent in both the technical and operational realities of these complex new requirements.
鈥淭his service gives firms an immediate path to compliance while laying the groundwork for broader, long-term efficiency gains.鈥�
The solution is designed to meet UK PRA requirements, while also meeting the needs of all global insurers who require a clearer view of how their collateral needs shift under market stress.
This level of insight allows insurers to make faster, better-informed decisions about liquidity, risk management, and operational readiness.
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