This consultation paper seeks feedback on a draft supervisory statement that sets out the PRA’s expectations of firms and its general approach to the following European Insurance and Occupational Pensions Authority (EIOPA) Guidelines:
(i) Set 2 of the Solvency II Implementing Technical Standards (ITS) and Guidelines (‘the Guidelines’) published on 6 July 2015;
(ii) on the system of governance published on 3 February 2015; and
(iii) on the own risk and solvency assessment (ORSA) published on 3 February 2015.
This consultation is relevant to all UK firms within the scope of Solvency II and to Lloyd’s.
This consultation does not include the PRA’s expectations regarding the Guidelines on supervision of branches of third-country insurance undertakings which are discussed in PRA Consultation Paper 31/15 ‘Solvency II: third-country insurance and pure reinsurance branches’, published in August 2015 (see Related Links).
Summary of proposals
The draft supervisory statement provides commentary on the following aspects of the EIOPA Set 2, System of Governance and ORSA Guidelines:
- recognition and valuation of assets and liabilities other than technical provisions;
- methods for determining the market shares for reporting;
- reporting for financial stability purposes;
- reporting and public disclosure; and
This consultation closed on 30 September 2015. Please address any comments or enquiries to CP30_15@bankofengland.co.uk
The PRA will consider the feedback received and publish the final supervisory statement before the implementation of Solvency II.
Solvency II: applying EIOPA Set 2, System of Governance and ORSA Guidelines - CP30/15
Final policy in relation to this consultation is available under related links.