General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
February 27, 2018

PRA published a report on its response to the inquiry of the Treasury Committee into Solvency II. PRA agrees with the Treasury Committee on the importance of fostering and maintaining a strong, effective, and open dialog between the regulator and the industry. In October 2017, the Treasury Committee issued a report titled “The Solvency II Directive and its Impact on the UK Insurance Industry.” In January 2018, Sam Woods, Deputy Governor for Prudential Regulation, set out his initial thoughts on the recommendations of the report. As requested by the Treasury Committee, PRA is providing further details on the areas discussed.

The report is split into four parts. Part 1 gives an overview of the UK insurance industry and sets out the rationale for the prudential regulation of insurers. Part 2 discusses the design of Solvency II, how it differs from the previous prudential regime for insurers in the UK, and the impact Solvency II has had on insurers since it came into force. Part 3 discusses the recommendation of the Treasury Committee in respect of the secondary competition objective, along with the points raised by the Treasury Committee about the engagement of PRA with industry and its skills and experience in insurance. Part 4 includes response to the policy recommendations made in the report of the Treasury Committee, along with an update on the further developments on other policy issues raised by the Association of British Insurers during the Treasury Committee’s inquiry.

PRA has limited scope to change Solvency II due to its detailed, rules-based nature. However, PRA is committed to making improvements to the implementation of Solvency II, where appropriate and where it has discretion to do so. There is a lot of common ground between the Treasury Committee, the industry, and PRA about aspects of Solvency II that do not work well. In this paper, PRA considered the Treasury Committee recommendations on specific policy issues and set out its responses, along with the actions taken to address the points raised.


Related Links

Keywords: Europe, UK, Insurance, Solvency II, Response to Recommendations, PRA

Related Articles
News

BCBS Publishes Results of Survey on Proportionality in Bank Regulation

BCBS published a report presenting the results of a survey conducted on proportionality practices in bank regulation and supervision.

March 19, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Third Update for March 2019

EBA published answers to seven questions under the Single Rulebook question and answer (Q&A) updates for this week.

March 15, 2019 WebPage Regulatory News
News

OCC Updates Recovery Planning Booklet of the Comptroller's Handbook

OCC updated the Recovery Planning booklet of the Comptroller’s Handbook.

March 15, 2019 WebPage Regulatory News
News

US Agencies Adopt Interim Rule to Facilitate Transfers of Legacy Swaps

US Agencies (FCA, FDIC, FED, FHFA, and OCC) are adopting and inviting comments on an interim final rule.

March 15, 2019 WebPage Regulatory News
News

EBA Publishes Report on Convergence of Supervisory Practices Across EU

EBA published annual report on the convergence of supervisory practices in EU.

March 14, 2019 WebPage Regulatory News
News

CPMI-IOSCO Publish Update to Level 1 Assessment of PFMI Implementation

CPMI and IOSCO jointly updated the Level 1 Assessment Online Tracker on monitoring of the implementation of the Principles for financial market infrastructures (PFMI).

March 14, 2019 WebPage Regulatory News
News

Agustín Carstens of BIS Speaks About New Role of Central Banks

While speaking at the 20th anniversary conference of the Financial Stability Institute (FSI), Agustín Carstens, the General Manager of BIS, highlighted the need for regulatory actions in light of the continued evolution of financial technology.

March 14, 2019 WebPage Regulatory News
News

PRA Publishes Policy Statement on Group Supervision Under Solvency II

PRA published a policy statement (PS9/19) that provides feedback on responses to the consultation paper CP15/18 and the final supervisory statement SS9/15 (Appendix) on group supervision under Solvency II.

March 14, 2019 WebPage Regulatory News
News

ECB Announces Start Date for Euro Short-Term Rate

ECB announced that it will start publishing the euro short-term rate (€STR) as of October 02, 2019, reflecting the trading activity of October 01, 2019.

March 14, 2019 WebPage Regulatory News
News

PRA Proposes to Update the Pillar 2 Capital Framework for Banks

PRA is proposing (CP5/19) to update the Pillar 2 capital framework to reflect continued refinements and developments in setting the PRA buffer (Pillar 2B).

March 13, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2754