PRA publishes consultation on Solvency UK reforms

Written by Adam Cadle

03/07/2023

The PRA is consulting on a major set of reforms to Solvency II with the aim of creating a new UK regulatory regime for insurance firms, known as Solvency UK.

The proposals include further streamlining of reporting requirements for all firms and substantially simplifying and improving the flexibility in the assessment of internal models. They will also foster new entrants into the UK insurance market by easing entry of new firms and simplifying the regulation of international insurers operating through branches.

The PRA invites feedback on the proposals set out in this consultation. This consultation period is split into two. It closes on 1 September 2023 for proposals in Chapters 2 to 10 and closes on 31 July 2023 for proposals in Chapter 11. Comments or enquiries can be addressed to CP12_23@bankofengand.co.uk.

Beyond this consultation, the PRA expects to consult separately in September 2023 on reforms for life insurers relating to investment flexibility and the matching adjustment.

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