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Home > Prudential Regulation Authority > 2013 news archive
 

2013 news archive

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​December 2013

On 12 December, the PRA published Supervisory Statement 4/13 ‘Solvency II: applying EIOPA’s preparatory guidelines to PRA-authorised firms’ for all firms within the scope of the Solvency II Directive. At industry briefings held to support the publication of the statement, Julian Adams, Executive Director of Insurance at the Bank of England, gave a keynote speech. In an accompanying video Julian explains: i) what a PRA Supervisory Statement is; ii) why this statement is important; and iii) what insurers need to do. All materials are available on the following page.

Preparing for Solvency II
 

November 2013

On 21 November 2013, a plenary vote was held in the European Parliament to amend and finalise the dates for implementation and transposition of the Solvency II Directive. The Parliament approved transposition being set for 31 March 2015 and implementation for 1 January 2016.
 
 
On 13 November 2013, provisional agreement was reached between the European Parliament, the European Commission and European Council on the Omnibus II Directive, see statement from the European Commission. The plenary vote of the Omnibus II Directive is forecast in the European Parliament on 3 February 2014. As part of the negotiations on the Omnibus II Directive, provisional agreement was also reached on the date of transposition, being 31 March 2015, and implementation of Solvency II being 1 January 2016. A plenary vote in the European Parliament to finalise the dates is scheduled for 20 November 2013.
 
 
On 8 November 2013, the PRA sent a request to firms in the internal model approval process for a smaller volume of data for the mid-year calculation of the early warning indicators. This information will add to the year-end 31 December 2012 data set collected in the summer to trial the development, testing and refinement of EWIs in the period before the implementation of Solvency II. Completed submissions are requested by Tuesday 17 December.
 

October 2013

On 21 October 2013, the Prudential Regulation Authority (PRA) published a consultation paper on a draft supervisory statement for all firms within the scope of the Solvency II Directive. The statement sets out the PRA’s expectations of firms in relation to the recently published European Insurance and Occupational Pensions Authority’s guidelines for the preparation of Solvency II. The consultation closes on Friday 15 November.
 
Julian Adams – Deputy Head PRA and Executive Director Insurance – will be hosting industry briefings in December and invitations will be issued to PRA-authorised firms by the end of October.
 
 
On 2 October 2013, the European Commission put forward a draft Directive postponing the application date of the Solvency II Directive to 1 January 2016. EU Commissioner Michel Barnier has invited co-legislators to reach agreement as soon as possible on this new Directive and Omnibus II.
 
 

September 2013

On 27 September 2013, the European Insurance and Occupational Pensions Authority (EIOPA) published the final Guidelines for the preparation of Solvency II. EIOPA's consultation reports, Guidelines and annexes are available on the EIOPA website. The PRA intends to publish a Supervisory Statement for consultation in the coming weeks which will include expectations of firms from 1 January 2014. EIOPA envisages issuing the Guidelines in all the official EU languages on 31 October 2013; National Competent Authorities will have two months from the issuance of the Guidelines to report to EIOPA about their compliance or intention to comply.
 
 
On 12 September 2013, the European Parliament rescheduled the plenary vote of the Omnibus II Directive from 11 March 2014 to 3 February 2014 – see ‘forecasts’ on the European Parliament website.
 
 

July 2013

On 18 July 2013, the European Insurance and Occupational Pensions Authority (EIOPA) published its results of peer reviews on pre-application of internal models. The two peer reviews cover supervisory practices in 24 Member States, and includes recommendations for EIOPA, the Internal Models Committee and National Supervisory Authorities.

EIOPA results of peer reviews on pre-application of internal models 
 
On 9 July 2013, Andrew Bailey, Deputy Governor and Chief Executive of the Prudential Regulation Authority (PRA), gave a key note speech at the Association of British Insurers Biennial Conference which included an update on Solvency II.

 Meeting the challenges of a changing world - the view from the PRA
 

June 2013

On 27 June 2013, the European Commission sent their report on the long-term guarantees assessment (LTGA) to the co-legislators (European Parliament and European Council), as input to trialogue discussions on the Omnibus II Directive.
 
 
On 19 June 2013, the European Insurance and Occupational Pensions Authority (EIOPA) closed its consultations on preparatory guidelines for Solvency II. The next steps for EIOPA to finalise the guidelines are set out in Julian Adams’ letter of 23 May 2013 (see below).
 

On 14 June 2013, the European Insurance and Occupational Pensions Authority (EIOPA) published its technical findings on the long-term guarantees assessment (LTGA). The European Commission is due to publish a report on the LTGA for co-legislators (European Parliament and European Council) as input to trialogue discussions on the Omnibus II Directive. 

 

May 2013

On 31 May 2013, the PRA sent data requests to a number of life and general insurance firms for responses by 31 July. Information about the data collection exercises was made available on 22 May 2013.
On 23 May 2013, as part of the commitment to share developments in the approach to the implementation of Solvency II, Julian Adams - Deputy Head PRA and Executive Director Insurance – wrote a letter to all firms affected by the Directive. The letter gives an update on the European timetable and what this means for the work that has to be done in the coming months.
 
In addition, Julian Adams also wrote a letter on 23 May 2013 to firms in the internal model approval process on the introduction of early warning indicators in the ICAS regime.
 
 

April 2013

On 30 April 2013, the Treasury Select Committee published a response from Andrew Bailey, CEO of the Prudential Regulation Authority, to Andrew Tyrie, Chairman Parliamentary Commission on Banking Standards, about the implications of Solvency II for UK insurers and consumers.
 
 

March 2013

On 27 March 2013, European Insurance and Occupational Pensions Authority (EIOPA) published its Consultations on Guidelines on preparing for Solvency II.

 

February 2013

On 21 February 2013, the European Parliament rescheduled the plenary vote of the Omnibus II Directive from 10 June 2013 to 22 October 2013 – see ‘forecasts’ on the European Parliament website.

European Parliament website
 

January 2013

Julian Adams, Director of Insurance at the Financial Services Authority wrote to firms in the internal model approval process to set out how firms could use Solvency II work to meet current regulatory requirements under the Individual Capital Adequacy Standards (ICAS). More detail on implementation of his approach will be provided by the PRA in the second quarter of 2013.

Letter from Julian Adams to firms
 
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