PRA has developed tools to analyze the data submitted by firms to identify key issues and emerging risks in the insurance market to support forward-looking judgment-based supervision. This release shares some headline outputs from its high-level analysis. PRA requests feedback on the release and suggestions for future releases by December 31, 2017.
This release presents a number of metrics over 2016, using data from the quarterly reporting templates only. It does not comment on the data or seek to provide any explanation of observed trends. There are two main cohorts in the release: life insurers and general insurers. The metrics are themed around capital, assets, and technical provisions (including risk margin). Any discrepancies or indicators of risk will be managed on an individual firm basis. There is value in setting out this data to enable firms to obtain a view of how they compare with industry averages and sense-check whether this accords with their internal views. The data is also valuable for the purpose of transparency, so that firms are aware of how we are reviewing the data submitted to us.
Related Link: Insurance Data Release (PDF)
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