The Prudential Regulation Authority (PRA) has published a final policy statement on insurance business transfers (PS1/22). The policy statement follows a consultation that took place last year (CP16/21). A Statement of Policy has also been published entitled ‘The PRA’s approach to insurance business transfers’. The Statement of Policy takes effect from 12 January 2022.
The consultation was undertaken in order to receive feedback on proposed changes to reflect the effect of Brexit, to provide additional guidance to firms, independent experts and other interested parties on the role and approach of the PRA and to provide guidance on the approach to firms in run-off and friendly societies.
The PRA does not consider that the changes made to the Statement of Policy are significant but should provide firms with further clarity on the approach taken to insurance business transfers.