The Prudential Regulation Authority (PRA) has launched the 2022 Insurance Stress Test (IST). The IST is run every two years and seeks information from the largest life and general insurance companies in the UK. In a ‘Dear CEO’ letter sent to the participating firms, the PRA sets out its objectives for the IST and provides … Continue Reading
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
The UK Government has launched its long-awaited consultation on proposed reforms to the Solvency II regime in the UK. Since leaving the European Union, the UK Government is now able to adapt its version of the Solvency II regime to more closely suit the UK insurance market. The UK Government believes that if certain changes … Continue Reading
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
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
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
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
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
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
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
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
As part of the UK Government’s review of Solvency II, a ‘Call for Evidence’ was published in October 2020. The Call for Evidence closed in February 2021. The insurance industry has been waiting for the results of the feedback to the Call for Evidence which was finally published on 1 July 2021. The Call for … Continue Reading
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
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, 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
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
In June 2020, the UK Government announced that it would review some of the features of Solvency II to ensure that the regime better reflects the UK insurance sector. The present regime, as implemented into UK law, has been designed to cover the entire EU insurance market but has not been adjusted to take into … Continue Reading
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
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
