Skip to main content
  • This website sets cookies on your device. To find out more about how we use cookies please refer to our Privacy and Cookie Policy. By continuing to use the site, we’ll assume that you are content for us to set these on your device.
  • Close
Home > Prudential Regulation Authority > Solvency II: consolidation of Directors’ letters – PS33/16

Solvency II: consolidation of Directors’ letters – PS33/16

25 November 2016


This Prudential Regulation Authority (PRA) policy statement (PS) provides feedback on the responses, and final supervisory statements (SS) for Consultation Paper (CP) 20/16, ‘Solvency II: consolidation of Directors’ letters’, May 2016.

This PS is relevant to all UK insurance firms within the scope of the Solvency II Directive (‘the Directive’) and to Lloyd’s.

The supervisory statements in the appendices to this PS set out the PRA’s final expectations for the following areas under the Directive, based on material contained in Directors’ letters, Executive Director’s letters and feedback statements (‘Directors’ letters’) issued between 1 April 2013 and 16 February 2016:

  • internal models – assessment, model change and the role of non-executive directors;
  • longevity risk transfers;
  • the own risk and solvency assessment (ORSA);
  • reinsurance – counterparty credit risk;
  • recognition of deferred tax;
  • transitional measures on risk-free interest rates and technical provisions; and
  • the treatment of pension scheme risk.
The Directors’ letters that form the basis of these supervisory statements have been archived. Appendix 8 lists the supervisory statements in which the PRA’s expectations, where relevant, are available.
Feedback on consultation responses
The PRA received six responses to CP20/16. Chapter 2 sets out the PRA’s feedback to these responses. 
Policy statement