Tag: Solvency II

Solvency II: Upcoming PRA consultation on amendments to the matching adjustment

Solvency II: Upcoming PRA consultation on amendments to the matching adjustment Last week, Gareth Truran of the Bank of England gave a speech on behalf of the Prudential Regulation Authority (PRA) outlining recent updates in respect of the reforms to Solvency II (so-called “Solvency UK”). The speech provides a high-level overview of the coming proposals … Continue Reading

Solvency II: PRA publishes consultation paper on amendments to Solvency II

On 29 June 2023, the Prudential Regulation Authority (PRA) published consultation paper (CP12/23). CP12/23 is the latest in a number of consultation papers issued by HM Treasury (HMT), the Bank of England (BoE) and the PRA as part of proposals to reform Solvency II. The government’s stated intention of these reforms is to take advantage … Continue Reading

PRA publishes discussion paper on potential reforms to risk margin and matching adjustment within Solvency II

The Prudential Regulation Authority (PRA) has published a discussion paper on possible reforms to the risk margin and matching adjustment in Solvency II. The discussion paper also contains a technical annex ‘Solvency II Review: Matching Adjustment and reforms to the Fundamental Spread. Responses to the discussion paper should be submitted by 21 July 2022. View: … Continue Reading

Draft Solvency 2 (Group Supervision) (Amendment) Regulations 2021 laid before Parliament

A draft of the Solvency 2 (Group Supervision) (Amendment) Regulations 2021 was laid before Parliament on 15 November 2021, alongside a draft explanatory memorandum.  The regulations are part of the measures being taken to address deficiencies in UK law after leaving the European Union. The draft regulations amend provisions (regulations 24-26 and 28) of the … Continue Reading

EIOPA publishes a report on the use of capital add-ons by national competent authorities under Solvency II during 2020

The European Insurance and Occupational Pensions Authority (EIOPA) has published its annual report on the use of capital add-ons by national competent authorities under Solvency II. Capital add-ons are used by authorities to ensure that capital reflects the risk profile of an insurance undertaking or group. Add-ons are set following supervisory review by the relevant … Continue Reading

European Commission adopts review of Solvency II

On 22 September 2021, the European Commission adopted a review of the Solvency II regime. The Solvency II regime includes the Solvency II framework directive (Directive 2009/138/EC) and delegated regulations. The review includes a legislative proposal to amend the framework directive as well as a legislative proposal for a new EU Insurance Recovery and Resolution … Continue Reading

PRA launches consultation on the UK definition of an insurance holding company

The Prudential Regulation Authority (PRA) has launched a consultation on its proposed approach to interpreting and applying the definition of an insurance holding company. The proposal is for the revised definition to be used in the Group Supervision Part of the PRA Rulebook. The aim is to provide a definition that distinguishes an insurance holding … Continue Reading

European Commission publishes implementing regulation for the calculation of technical provisions and basic own funds under Solvency II

The European Commission has published Implementing Regulation (EU) 2021/1354, which lays down technical information for the calculation of technical provisions and basic own funds for reporting under the Solvency II Directive (2009/138/EC). The Implementing Regulation sets out technical information for reporting reference dates from 30 June 2021 until 20 September 2021. The Implementing Regulation was, … Continue Reading

PRA sends ‘Dear CFO’ letter on launch of Qualitative Questionnaire to gather information for the UK Solvency II review

Prudential Regulation Authority Executive Director, Insurance, Charlotte Gerken has sent a ‘Dear CFO’ letter on the launch of a qualitative data gathering exercise. The exercise is part of the UK review of Solvency II rules following leaving the European Union. The Qualitative Questionnaire complements the quantitative impact study (QIS) that was launched in July. The … Continue Reading

Sustainability amendments to Solvency II and the IDD published in the Official Journal of the EU

Various amendments to the Solvency II Delegated Regulation ((EU) 2015/35) and to the Insurance Distribution Directive Delegated Regulations ((EU) 2017/2358 and (EU) 2017/2359) have been published in the Official Journal of the European Union so that sustainability requirements can be introduced into the Solvency II and the insurance distribution regimes in the European Union. The … Continue Reading

PRA launches Solvency II quantitative impact study and sets out its view on the matching adjustment and risk margin

The Prudential Regulation Authority (PRA) has published a ‘Dear CEO’ letter from Charlotte Gerken, Executive Director, Insurance, at the PRA concerning the launch of the data gathering exercise for the UK review of Solvency II. The data gathering exercise is known as a quantitative impact study (QIS). Firms have been invited by the PRA to … Continue Reading

European Commission adopts delegated regulations that amend existing regulations to introduce greater sustainability requirements into Solvency II, MiFID and the IDD

The European Commission has adopted a series of delegated regulations that help to drive investors towards more sustainable economic activities. The measures are part of the European Green Deal. The adopted delegated regulations are part of a suite of sustainability measures adopted at the same time including the EU Taxonomy Climate Delegated Act and the … Continue Reading

EIOPA publishes opinion on the supervision of the use of climate change risk scenarios in the ORSA

The European Insurance and Occupational Pensions Authority (EIOPA) has published an opinion on the use of climate change risk scenarios in insurance undertakings’ Own Risk and Solvency Assessment (ORSA). The opinion has been written to help supervisory authorities understand EIOPA’s expectations in terms of climate risk scenarios included in the ORSA. Solvency II requires that … Continue Reading

Sam Woods delivers a speech on the future of UK insurance regulation

Sam Woods, Deputy Governor for Prudential Regulation and CEO of the Prudential Regulation Authority (PRA), has delivered a speech to the Association of British Insurers in which he stated that insurance regulation is about to change in the UK. Woods discussed the reform to the architecture of financial services regulation in the UK as well … Continue Reading

European Commission publishes summary report on its Solvency II 2020 review consultation

The European Commission has published a summary report on its consultation on the review of the Solvency II Directive (2009/138/EC). The summary report sets out the feedback received during the consultation which was run between July and October 2020. The Commission does not include the Commission’s responses to feedback. The Commission will consider the feedback … Continue Reading

EIOPA launches consultation on the supervision and use of climate change risk scenarios in the Solvency II ORSA

The European Insurance and Occupational Pensions Authority (EIOPA) has published for consultation a draft Opinion on the supervision of the use of climate-change risk scenarios in the ORSA. The ORSA is an internal risk management assessment of all the various risks that might impact an insurer’s balance sheet and is a requirement under Solvency II. … Continue Reading

Greater outsourcing in German life insurance sector predicted following expected change to Criminal Code

The adoption of a draft law amending criminal law provisions protecting insurance related information will finally enable life insurers to make wider use of outsourcing by removing disclosure to service providers from the scope of Sec. 203 German Criminal Code (StGB) under certain conditions. In spite of some uncertainties, this is a major breakthrough and … Continue Reading
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