November 09, 2017

PRA published the consultation paper CP23/17 on financial management and planning by insurers. PRA is seeking views on the draft supervisory statement—which has been included in the Appendix to CP23/17—on effective financial management and planning by insurance firms and groups. PRA invites feedback on the proposals set out in CP23/17 by February 09, 2018.

The draft supervisory statement sets out the PRA expectations covering the framework for development and maintenance of a risk appetite statement by an insurer, the application of this risk appetite to an insurer’s business and financial plans, and the assessment of the suitability and sustainability of capital distribution plans in the context of this risk appetite. These proposals aim to set out how the application of effective risk management and governance may be linked together with the need for insurers to maintain a sound financial condition going forward. PRA considers that effective financial management and planning is especially important for insurers with a high risk appetite and for insurers with capital levels that may fluctuate significantly.

The draft supervisory statement is intended to complement existing policy material, rather than to set any new expectations on governance or risk management for insurers. The supervisory statement is drafted in the context of the Conditions Governing Business and Investments Parts of the PRA Rulebook and Articles 258–267 of the Solvency II Regulation (Commission Delegated Regulation (EU) 2015/35). It would sit alongside "The PRA’s approach to insurance supervision"; SS41/15, titled "Solvency II: applying EIOPA Set 2, System of Governance and ORSA Guidelines"; SS5/16 titled "Corporate Governance: Board responsibilities"; SS19/16 titled "Solvency II: ORSA"; and SS5/17 titled "Dealing with a market turning event in the general insurance sector." CP23/17 is relevant to all UK insurance firms and groups, in scope of the Solvency II Directive, and to the Society of Lloyd’s and managing agents. 

 

Related Link: CP23/17 (PDF)

Keywords: Europe, UK, Insurance, Financial Management and Planning, CP23/17, Solvency II, Consultation, PRA

Related Articles
News

IMF Releases Report on 2019 Article IV Consultation with United States

IMF published its staff report in the context of the 2019 Article IV consultation with the United States.

June 24, 2019 WebPage Regulatory News
News

BIS Report Discusses Regulatory Issues Related to Big Techs in Finance

BIS has pre-released a chapter of the BIS Annual Economic Report; this chapter focuses on the risks and opportunities presented by large technology firms in the financial services sector.

June 23, 2019 WebPage Regulatory News
News

IOSCO Report Examines Liquidity in Corporate Bond Markets

IOSCO published a report that examines the factors affecting liquidity, under stressed conditions, in the secondary corporate bond markets.

June 21, 2019 WebPage Regulatory News
News

FED Publishes Results of the 2019 Stress Tests for Banks

FED published a report presenting results of the Dodd-Frank Act Stress Test (DFAST) exercise for 2019.

June 21, 2019 WebPage Regulatory News
News

BCBS Report Examines Global Pillar 2 Supervisory Review Practices

BCBS published a report that examines the Pillar 2 supervisory review practices and approaches in Basel member jurisdictions.

June 21, 2019 WebPage Regulatory News
News

IASB Publishes Work Plan and Meeting Updates for June 2019

IASB published an updated work plan and a summary of its June meeting, which presents preliminary decisions of the Board.

June 21, 2019 WebPage Regulatory News
News

HKMA Publishes Banking Exposure Limits Code Under Banking Ordinance

HKMA issued a circular to all authorized institutions informing that the Banking (Exposure Limits) Code has been published in the Gazette on June 21, 2019.

June 21, 2019 WebPage Regulatory News
News

OSFI Proposes Guideline on Internal Model Oversight for Insurers

OSFI proposed the draft guideline E-25 on the internal model oversight framework for federally regulated property and casualty (P&C) insurance companies.

June 21, 2019 WebPage Regulatory News
News

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

Under the Single Rulebook question and answer (Q&A) updates for this week, EBA published one answer regarding the calculation of institution-specific countercyclical capital buffer rates.

June 21, 2019 WebPage Regulatory News
News

SEC Finalizes Capital and Margin Requirements for Security-Based Swaps

SEC adopted a package of rules and rule amendments to establish capital, margin, and segregation requirements for security-based swaps, under Title VII of the Dodd-Frank Act.

June 21, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3304