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Home > Prudential Regulation Authority > Detailed technical information
 

Detailed technical information

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PRA Solvency II regulatory reporting - frequently asked questions

The list of frequently asked questions (FAQs) - (see Key Resources below) - has been put together by the PRA to help insurance firms with questions they may have on the submission of Solvency II information.

Firms should note that the preparation of the Solvency II templates should follow the requirements of the Delegated Regulation (EU) 2015/35 and the Implementing Technical Standards, which are directly binding on firms. Where this document is read it is recommended it is done so in conjunction with the EIOPA guidance.  Any subsequent comment by EIOPA could supersede any answer provided by the PRA in this document.

Technical queries on the reporting material should be presented to EIOPA through relevant trade bodies or alternatively directly to EIOPA using the Q&A form – see External links.

To raise further questions with the PRA, firms can contact:
a) Their named supervisory contact;
b) The PRA Firm Enquiries Function at PRA.FirmEnquiries@BankofEngland.co.uk or 020 3461 7000; or
c) Their relevant representative on the PRA regulatory reporting industry working group.

Update 29 March 2017: The list of frequently asked questions (FAQs) question H2,  was updated to reflect EIOPA’s comment in recently published Q&A 802 in its Q&A on Regulation.

Solvency II reporting clarifications

On 11 May 2016, the PRA set out the basis of the correct allocation to the lines of business, and in consequence some issues on the unbundling of contracts, that the PRA expects for reporting insurance contracts under employers' liability insurance and motor insurance. The information in the note below is based on the Solvency II Directors’ update letter of 14 July 2015 on employers' liability insurance and motor insurance which was issued to firms to enable their compliance with Solvency II by 1 January 2016.

This note is relevant to all firms in scope of Solvency II and to the Society of Lloyd’s and relates to the Implementing Technical Standards (ITS) on Supervisory Reporting.

Business line reporting for employers' liability insurance and motor insurance, May 2016

On 18 December 2015, the PRA set out the basis of preparation on which it will accept look through reporting for Collective Investment Undertakings under template S.06.03.

Basis of preparation on which the PRA will accept look through reporting for Collective Investment Undertakings under S.06.03

Legal Entity Identifiers

EIOPA published its Guidelines on the use of Legal Entity Identifiers (LEIs) in September 2014, (EIOPA BoS-14-026, see External Links). The Guidelines recommend that LEI codes should be used as unique identification codes for all institutions under the PRA’s supervisory remit. The PRA intends to comply with these Guidelines.

In the UK, LEI codes are allocated and maintained by the London Stock Exchange (see External Links), which has been endorsed by the UK’s Regulatory Oversight Committee (ROC) as an authorised Local Operating Unit (LOU) for the UK.

The PRA requested all firms within the scope of Solvency II to request an LEI code by 30 June 2015, while all other insurers should have requested an LEI code by 30 June 2016.

For firms that are part of a group, the PRA requests that all entities within the group obtain an LEI code, including holding and dormant companies. The PRA acknowledges that this may prove burdensome for some firms, however believes there are important advantages of using LEI codes for regulatory reporting across borders and the financial industry.

Should entities within a firm’s group be unable to obtain LEI codes, the PRA suggests the firm follow EIOPA’s instructions on p84 of its document titled “Navigating through the Solvency II reporting and disclosure package: Note accompanying the public consultation on the Guidelines and ITS” (see Related Links) which states:

“For non-EEA undertakings and non-regulated undertakings within the group, identification code provided will be provided by the group. When allocating an identification code to each non-EEA or non-regulated undertaking, it should comply with the following format in a consistent manner: identification code of the parent undertaking + ISO 3166-1 alpha-2 code of the country of the undertaking + 5 digits”

When a code constructed in this manner is used within the reporting templates, the ‘Type of Code of Undertaking’ should be recorded as a ‘specific code’ rather than an LEI.

The PRA requests all firms to notify their usual supervisory contact to confirm that an LEI code has been requested, as appropriate.

Key Resources

 PRA Solvency II Regulatory Reporting FAQs

Update 1 June 2017: The list of frequently asked questions (FAQs) was updated with a new question, H3, to reflect the PRAs recent response to the Association of British Insurers (ABI).
  

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