This paper consults on revisions to Supervisory Statement 10/15 ‘Solvency II: third-country branches’, published in March 2015, concerning the PRA’s approach to third-country insurance and pure reinsurance branches under the Solvency II Directive.
This consultation paper is relevant to non-EEA insurance undertakings that have a UK branch (third-country branch undertakings) including non-EEA insurance or reinsurance undertakings that have a UK branch that solely carries out reinsurance activities (a third-country pure reinsurance branch).
Readers are also referred to PRA Consultation Paper 30/15 Solvency II: applying EIOPA Set 2, System of Governance and ORSA Guidelines also published on 28 August 2015 (see Related Links).
Summary of proposals
The main changes to the supervisory statement are:
- The expectation that third-country branch undertakings comply with the requirements in the European Insurance and Occupational Pensions Authority (EIOPA) Branch Guidelines that are relevant to them and comply with the rules in the PRA Rulebook that apply to third-country branch undertakings in line with the EIOPA Branch Guidelines and that undertakings with pure reinsurance branches also do so as if those guidelines applied to them.
- Details of how the PRA expects third-country branch undertakings to report to the PRA where those EIOPA Branch Guidelines permit the PRA to take a proportionate approach according to the nature, scale and complexity of the branch business.
- In particular, third-country branches will be required to use the XBRL format for reporting – further details can be found on the Taxonomy page on the PRA’s website and provide an analysis of the home country winding-up regime.
This consultation closed on 30 September 2015. The PRA invited feedback on the proposals set out in this consultation. Responses should be sent to CP31_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: third-country insurance and pure reinsurance branches – CP31/15
Final policy in relation to this consultation is available under related links.