Featured Product

    PRA Consults on Maintenance of TMTP Under Solvency II

    May 22, 2019

    PRA published a consultation paper (CP11/19) that sets out its approach to update supervisory statement (SS6/16) on maintenance of the transitional measure on technical provisions (TMTP) under Solvency II. The consultation closes on August 21, 2019. CP11/19 is relevant to UK insurance and reinsurance firms within the scope of Solvency II that have been granted approval to use the TMTP, the Society of Lloyds, and firms that are considering applying to use this transitional measure.

    The proposals provide:

    • Additional guidance for firms proposing to use a proportionate approach to the TMTP recalculation methodology
    • Further clarity on the consistency of Solvency I and Solvency II methodologies

    TMTP mitigates changes to the calculation of technical provisions that have been introduced by Solvency II. The starting point for the calculation of TMTP is a comparison of technical provisions calculated under Solvency I Pillar 2 (Individual Capital Adequacy Standards) and under Solvency II. In its response to the Treasury Select Committee’s (TSC) report on Solvency II, PRA recognized the burden of maintaining multiple systems for recalculation of the TMTP and committed to considering the feasibility of simplifying the TMTP calculations. In recognizing that the current operation of the TMTP is overly burdensome for firms, PRA has investigated a range of methodologies to simplify the TMTP recalculations. Furthermore, following responses to CP13/18 and policy statement (PS31/18) on equity release mortgages, PRA has considered the approach to consistency between Solvency I and Solvency II bases set out in SS6/16.

     

    Related Links

    Comment Due Date: August 21, 2019

    Keywords: Europe, UK, Insurance, Solvency II, TMTP, Transitional Measure, Reinsurance, Pillar 2, SS6/16, CP11/19, PRA

    Featured Experts
    Related Articles
    News

    FSI Paper Examines Use of Suptech Initiatives by Financial Authorities

    The Financial Stability Institute (FSI) of BIS published a paper that examines the suptech developments by analyzing suptech initiatives of 39 financial authorities globally.

    October 17, 2019 WebPage Regulatory News
    News

    US Agencies Consult on Policy Statement on Allowance for Credit Losses

    US Agencies (FDIC, FED, NCUA, and OCC) are consulting on the policy statement on allowances for credit losses and on the guidance on credit risk review systems.

    October 17, 2019 WebPage Regulatory News
    News

    PRA Consults on Approach to Supervising Liquidity and Funding Risks

    In consultation paper (CP27/19), PRA published a proposal (CP27/19) to update the supervisory statement SS24/15 on the PRA approach to supervising liquidity and funding risk.

    October 17, 2019 WebPage Regulatory News
    News

    FSB Report Examines Implementation and Impact of G20 Financial Reforms

    FSB published fifth annual report on the implementation and effects of the G20 financial regulatory reforms.

    October 16, 2019 WebPage Regulatory News
    News

    EBA Launches Consultation on Comprehensive Pillar 3 Disclosures

    EBA proposed the new comprehensive implementing technical standard (ITS) for public disclosures by financial institutions.

    October 16, 2019 WebPage Regulatory News
    News

    EBA Consults on Revised Technical Standards on Supervisory Reporting

    EBA launched a consultation on the revised implementing technical standards, or ITS, on supervisory reporting.

    October 16, 2019 WebPage Regulatory News
    News

    BoE and FCA Examine Use of Machine Learning in Financial Sector in UK

    BoE and FCA published a report on the results of a joint survey by BoE and FCA in 2019 to better understand the use of machine learning in the financial services sector in UK.

    October 16, 2019 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel Framework

    BCBS published the seventeenth progress report on adoption of Basel regulatory framework.

    October 16, 2019 WebPage Regulatory News
    News

    APRA Proposes Measures to Strengthen Capital for Bank Depositors

    APRA proposed changes to APS 111, which is the prudential standard on measuring capital adequacy and establishes the criteria for regulatory capital requirements of authorized deposit-taking institutions.

    October 15, 2019 WebPage Regulatory News
    News

    EIOPA Consults on Technical Advice for the 2020 Review of Solvency II

    EIOPA is consulting on an opinion that sets out technical advice for the 2020 review of Solvency II.

    October 15, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3981