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Home > Prudential Regulation Authority > Dealing with a market turning event in the general insurance sector – PS16/17
 

Dealing with a market turning event in the general insurance sector – PS16/17

05 July 2017

Overview

This Prudential Regulation Authority (PRA) policy statement (PS) provides feedback to responses, and the final Supervisory Statement (SS) 5/17, ‘Dealing with a market turning event in the general insurance sector’ (see Appendix), for Consultation Paper (CP) 32/16 ‘Dealing with a market turning event in the general insurance sector’.

This PS also provides responses, in the context of the CP proposals and policy on a market turning event (MTE), to recommendations made to the PRA set out in an industry White Paper published in January 2017. This follows an industry-sponsored dry run exercise simulating a $200 billion catastrophic loss event that took place in November 2016 (see Chapter 3).

This PS is relevant to all PRA-regulated general insurance firms in scope of the Solvency II Directive, and to the Society of Lloyd’s (Lloyd’s) and managing agents (‘Solvency II firms’).

Feedback on consultation responses

The PRA received seven responses to CP32/16. All respondents were supportive of the intentions behind the proposals. Following consideration of respondents’ comments to the CP and the recommendations following the industry-sponsored dry-run exercise, the PRA has made several changes to the SS consulted on. These changes and feedback to responses are set out in Chapter 2.

Policy statement

Dealing with a market turning event in the general insurance sector – PS16/17

Appendix

Dealing with a market turning event in the general insurance sector – SS5/17

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