This section of the website is for firms wishing to apply for an approval or waiver under the Solvency II Directive.
The Directive contains various provisions under which the PRA can grant approval to insurance firms. Some of these approvals are given effect by the Financial Services and Markets (The Solvency 2 Regulations 2015) ('the Statutory Instrument') and are known as 'Solvency II approvals'. Others are given effect using a waiver under S. 138A of the Financial Services and Markets Act 2000 and are known as 'Solvency II waivers'.
The transactions that may be approved under Solvency II are listed below, together with the application types. To access information, forms, and guidance relating to each approval, please follow the link given in the corresponding column heading. The 'Solvency II waivers' link will take users to the waivers and modifications home page where they can find information about the waivers process along with Solvency II-specific information and forms.
|Ancillary own funds (SI Reg 44)|
|Exclusions verification (SI Reg 41)|
|Internal models, including major change applications (SI Reg 48)|
|Joint approval for 3rd country branches (SI Reg 50)|
|Matching adjustment (SI Reg 42)|
|Own fund items not on the list (SI Reg 46)|
|Supervision of group solvency for groups with centralised risk management (SI Reg 52)|
|Transitional measure – risk free rate (SI Reg 53)|
|Transitional measure - technical provisions (SI Reg 54)|
|Undertaking specific parameters & group specific parameters (SI Reg 47)|
|Volatility adjustment (SI Reg 43)|
|Exclude entities from the scope of group supervision|
|Group choice of SCR calculation method|
|Group SCR or other measures for non-equivalent groups|
|Non-disclosure of information in solvency financial condition report |
|Quarterly reporting exemption |
|Single group own risk and solvency assessment report |
Insurance Special Purpose Vehicles
Any firm that is planning to use a new UK based Special Purpose Vehicle in accordance with Article 211 of the Solvency II Directive should discuss these proposals with its PRA supervisor prior to submitting a formal application for authorisation and refer to the new firm authorisations page. Firms should also refer to Chapter XV of the Solvency II Regulations and the implementing technical standards with regard to the procedures for supervisory approval to establish special purpose vehicles.
On 1 March HM Treasury published a consultation document on Insurance Linked Securities. This includes a section on the potential approach to authorisation and supervision of Insurance Special Purpose Vehicles, developed in consultation with the PRA and Financial Conduct Authority. See link to the consultation below.
Insurance Linked Securities: consultation