PRA Proposes Amendments on Longevity Risk Transfers Under Solvency II
PRA published the consultation paper CP3/19, which sets out proposals to update the supervisory statement (SS18/16) on longevity risk transfers under Solvency II. PRA proposes to change its expectations for pre-notification of longevity risk transfers and hedge arrangements and to update the key risks arising from longevity risk transfers. Comments are requested by May 06, 2019. CP3/19 is relevant to PRA-authorized UK firms that fall within the scope of the Solvency II Directive and to the Society of Lloyd’s.
PRA proposes to update SS18/16 to change its expectations for how firms notify PRA of new longevity risk transfer arrangements and to highlight an additional key risk (basis risk) that should be included in firms’ assessments of the residual risks these transactions give rise to. The proposed changes differentiate between the level of pre-notification expected for large and/or complex transactions and other transactions. For large and/or complex transactions, which are defined in the updated SS18/16, PRA does not propose to change how firms engage with PRA in advance of their execution. However, for other transactions, PRA proposes to streamline the notification process by enabling firms to report these via a template. In addition to simplifying and standardizing the information firms are required to provide to PRA, this will also remove the need for the information to be reviewed by PRA in advance.
Related Links
Comment Due Date: May 06, 2019
Keywords: Europe, EU, Insurance, Solvency II, Longevity Risk Transfers, Proportionality, Pre-notification Expectation, CP3/19, SS18/16, PRA
Featured Experts
Cassandra Hannibal
IFRS 17 subject matter expert; actuary; risk management and capital projection specialist
Adam Koursaris
Asset and liability management expert; capable modeler; risk and capital specialist
Previous Article
ESMA Revises Guidelines for Reporting by Credit Rating AgenciesRelated Articles
|
News
EIOPA Forms Consultative Expert Group on Digital Ethics in InsuranceEIOPA established the Consultative Expert Group on Digital Ethics in Insurance to assist EIOPA in the development of digital responsibility principles in insurance.
September 17, 2019
WebPage
Regulatory News
|
|
News
FASB Proposes Taxonomy Changes Related to Topics 848 and 470FASB proposed taxonomy improvements for the proposed Accounting Standards Update on topic 848 on facilitation of effects of reference rate reform on financial reporting.
September 16, 2019
WebPage
Regulatory News
|
|
News
BoE Statement on Recalculating Transitional Measures Under Solvency IIBoE notified that it will be willing to accept applications from firms to recalculate transitional measure on technical provisions (TMTP) as at September 30, 2019.
September 16, 2019
WebPage
Regulatory News
|
|
News
BIS Hosts Conference to Discuss Issues from Emergence of StablecoinsBIS hosted a conference in Basel to discuss policy and regulatory issues posed by the emergence of stablecoin initiatives backed by financial institutions and large technology companies.
September 16, 2019
WebPage
Regulatory News
|
|
News
BIS Paper on Embedded Supervision of Blockchain-Based Financial MarketBIS published a working paper that investigates ways to regulate and supervise blockchain-based financial markets.
September 16, 2019
WebPage
Regulatory News
|
|
News
BoE Paper on Market-Implied Systemic Risk and Shadow Capital AdequacyBoE published a working paper that presents a forward-looking approach to measure systemic solvency risk.
September 13, 2019
WebPage
Regulatory News
|
|
News
HKMA Consults on Policy Module on Pillar 2 Supervisory Review ProcessHKMA is consulting on the revised Supervisory Policy Manual module CA-G-5 that sets out the HKMA approach to conducting the supervisory review process under Pillar 2.
September 13, 2019
WebPage
Regulatory News
|
|
News
PRA Publishes Waiver by Consent of Continuity of Access RulesPRA published a new waiver by consent to waive the Continuity of Access requirements contained in the Depositor Protection Part of the PRA Rulebook (DPP).
September 13, 2019
WebPage
Regulatory News
|
|
News
EBA Single Rulebook Q&A: Second Update for September 2019EBA updated the Single Rulebook question and answer (Q&A) tool with answers to three questions.
September 13, 2019
WebPage
Regulatory News
|
|
News
BoE Publishes Update on Meeting of Working Group on Risk-Free RatesBoE published the minutes of the July meeting of working group on sterling risk-free reference rates.
September 13, 2019
WebPage
Regulatory News
|
