PRA writes to CFOs introducing SII qualitative questionnaire

Written by Adam Cadle

16/08/2021

The PRA has written to CFOs of life and general insurers introducing a qualitative questionnaire aimed at supporting the development of potential Solvency II reforms.

In the letter, PRA executive director, insurance supervision, Charlotte Gerken, said the questionnaire “will complement the QIS by allowing us to undertake a broader analysis of areas for reform, beyond quantitative balance sheet impacts”.

Specifically, the questionnaire will gather information for three key purposes:

- First, to support the development of reforms to make the regime more streamlined and/or flexible this includes MA requirements, the internal model approval framework, and the TMTP.
- Second, to understand the business impacts of potential policy design options, particularly how firms might respond to regulatory changes to the Risk Margin, MA, and internal model approval framework; and how these changes might support the objectives of the review.
-Third, to understand the costs of complying with the current regime, as well as the implementation costs of potential policy design options, for example for the Risk Margin and the MA.

Responses to the questionnaire are requested by 20 October 2021 and full details can be viewed here.

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