Your question is Stress Testing a Life Portfolio. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
You are reviewing a life insurance portfolio under a sharp macroeconomic shock. The concern is how falling interest rates, wider credit spreads, and higher lapse or mortality stress could interact and change losses.
How would you design a stress test for a life insurance portfolio facing a sudden macroeconomic downturn?