PRA launches consultation to help insurers accelerate investment in UK

Written by Adam Cadle

08/04/2025

The UK’s Prudential Regulation Authority (PRA) has launched a consultation to help insurers accelerate investment in the UK.

The consultation paper sets out the regulator’s proposed rules to reform the Matching Adjustment (MA) application process by introducing a new Matching Adjustment Investment Accelerator (MAIA) permission.

Under the proposals, firms with a MAIA permission will have 24 months to submit a formal MA application on eligible assets with new features, reducing the risk that firms miss out on time-sensitive investment opportunities.

Sam Woods, deputy governor for prudential regulation and CEO of the PRA, said: “This innovation will enable insurers to make more rapid investment decisions and support growth in the UK economy, while protecting policyholders.”

The MA permits firms to discount their liability cash flows at a higher rate than the basic risk-free rate, resulting in a lower liability value. The consultation paper, which closes on 4 June 2025, is relevant to insurers that currently have an MA permission, or those that may seek an MA permission in the future.

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