Featured Product

    PRA Seeks Input and Issues Specifications for Insurance Stress Tests

    April 15, 2019

    PRA announced that it will conduct an insurance stress test for the largest regulated life and general insurers from July to September 2019. PRA has also published scenario specifications, guidelines, instructions, and templates for both life insurance and general insurance stress tests. Feedback is being sought on all aspects of this exercise from firms and other industry participants by May 31, 2019. Following consideration of the technical input, PRA intends to issue a formal announcement to request firms’ participation on July 01, 2019 to complete this exercise by September 30, 2019.

    General insurers will be most familiar with this exercise, as it represents an evolution of the stress testing exercises conducted in 2015 and 2017. For general insurers, PRA will be running a number of scenarios jointly with the Bermuda Monetary Authority (BMA), reflecting commitment to transparency, supervisory cooperation, and information-sharing by both Authorities, in line with the Insurance Core Principles (ICP) of IAIS. This joint exercise will allow PRA to understand, in more depth, the interdependencies between London Market and Bermuda-based reinsurers. For life insurers, this exercise captures potential risks that were not fully covered under last year’s EIOPA stress test.

    Along with these market-wide stress tests, PRA will also be requesting a climate scenario designed to provide additional market impetus in this area and to inform the development of a consistent and effective approach to climate-focused scenario analysis. PRA is specifically requesting feedback and technical inputs on the following aspects:

    • Clarity of the instructions and feasibility of the timetable—specifically whether there are any areas that require further explanation or clarification
    • Any concerns on the availability of the information to complete the outputs required in the template
    • For Scenario 1 ("Downturn in the economic environment"), what are the pros and cons of the two options outlined for the credit downgrade event
    • For general insurers only, any specific comments relating to the joint exercise with BMA

     

    Related Links

    Comment Due Date: May 31, 2019

    Keywords: Europe, UK, Insurance, General Insurers, Life Insurers, Stress Testing, Climate Risks, Scenarios, Instructions, Guidelines, PRA

    Featured Experts
    Related Articles
    News

    APRA Updates Validation and Derivation Rules in September 2020

    APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    September 24, 2020 WebPage Regulatory News
    News

    EC Proposes Frameworks for Crypto-Assets and Operational Resilience

    EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.

    September 24, 2020 WebPage Regulatory News
    News

    ECB Publishes Opinion on Proposals to Amend Securitization Framework

    ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.

    September 24, 2020 WebPage Regulatory News
    News

    FCA Consults on Regulation of International Firms in UK

    FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.

    September 23, 2020 WebPage Regulatory News
    News

    MAS Amends Notice on Capital Adequacy Requirements of Banks

    MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.

    September 23, 2020 WebPage Regulatory News
    News

    FCA to Begin to Move Firms to New Data Collection Platform RegData

    FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.

    September 23, 2020 WebPage Regulatory News
    News

    ISDA Expects IBOR Fallbacks to be Effective by End of January 2021

    ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.

    September 23, 2020 WebPage Regulatory News
    News

    APRA Reviews Repayment Deferral Plans, Identifies Best Practices

    APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.

    September 22, 2020 WebPage Regulatory News
    News

    ESAs Assess Risks to Financial Sector After COVID-19 Outbreak

    ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.

    September 22, 2020 WebPage Regulatory News
    News

    BoE Confirms Withdrawal of COVID Corporate Financing Facility

    BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.

    September 22, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5836