PRA Publishes Policy Statement on Group Supervision Under Solvency II

The consultation took place from July to November 2018 and PRA received one response to CP15/18 that highlighted a minor drafting point that has been corrected in the final SS9/15. PRA does not consider the change made to the draft policy to be significant and PRA has not reassessed the cost-benefit analysis or impact on mutuals. This policy statemetn is relevant to all UK insurance firms in the scope of the Solvency II Directive and to the Society of Lloyd’s.

SS9/15 was amended to clarify that in assessing group own funds availability, the solo SCR should no longer be presumed to be a barrier to availability. SS9/15 clarifies that PRA expects such availability analysis to be provided only where a group insurer is based in a jurisdiction that is not subject to a regime that is similar to, and not built on the same principles in relation to capital requirements and quality of capital at solo level as, the UK solvency regime. SS9/15 should be read in conjunction with the relevant European legislation, the Group Supervision Part of the PRA Rulebook, the Solvency II Regulations 2015, and the PRA insurance approach document. 

Related Links

• PS9/19 and CP15/18
• SS9/15

Keywords: Europe, UK, Insurance, Solvency II, Group Supervision, SCR, PS9/19, CP15/18, Own Funds, PRA