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Home > Prudential Regulation Authority > 2014 news archive
 

2014 news archive

Solvency II news  |  Solvency II materials  |  2015 news archive  |  2014 news archive  |  2013 news archive

 

December 2014

On 19 December 2014, the PRA published reporting schedules for firms with non-December year ends. This has been made available on the regulatory reporting page.
 
 
On 19 December 2014, the PRA published an update letter from the PRA's Insurance Directors for all Solvency II-affected firms.
 
 
On 12 December 2014, the PRA published feedback for general insurance firms on the standardised risk information data collection exercise issued in May 2014. This has been made available on the Other Pillar 1 aspects page.
 
 
On 2 December 2014, EIOPA published its Public Consultation CP-14-062 on Set 2 of the Solvency II Implementing Technical Standards and Guidelines. The consultation papers, accompanied by a cover note and templates for comments, can be found on the EIOPA consultation papers page.
 
 

November 2014

On 21 November 2014, the PRA published an update letter from the PRA's Insurance Directors for all Solvency II-affected firms.
 
 
On 21 November 2014, the PRA released a checklist, information and an accompanying spreadsheet for firms to use when submitting a pre-application for matching adjustment. While not mandatory, the PRA strongly encourages firms to submit these materials as part of their pre-application.
 
 
On 21 November 2014, the PRA published CP24/14 ‘Solvency II: further measures for implementation’.
 
 

October 2014

On 31 October 2014, EIOPA submitted Set 1 Implementing Technical Standards on supervisory approval processes for Solvency II to the European Commission.

EIOPA website

On 17 October 2014, the PRA held the Solvency II: countdown to implementation industry conference. Materials from the conference are available under 7. Solvency II Conference: countdown to implementation on the following page.


Solvency II materials
 
On 16 October 2014, the PRA issued an update letter from the PRA's Insurance Directors to all Solvency II-affected life and general insurers.
 
 
On 16 October 2014, the PRA published information on the Solvency II balance sheet, technical provisions and own funds review on the ‘Other Pillar 1 aspects’ page in the Solvency II section of the Bank website.

 PRA Solvency II: Balance sheet, technical provisions and own funds review, October 2014

Other Pillar 1 aspects
 
On 15 October 2014, the PRA published a consultation paper that sets out the PRA’s guidance and expectations for firms for applying for various Solvency II approvals including the internal model and the matching adjustment. It also provides details on the PRA’s pre-application process for the matching adjustment which runs from 1 December 2014 to 6 January 2015.

CP23/14: Solvency II approvals  

Also on 15 October 2014, the PRA published a letter from Paul Fisher, Executive Director of Insurance Supervision. The letter answers questions on Article 77(b) of the Solvency II Directive, specifically on interpreting the eligibility criteria and the nature of the evidence the PRA expects firms to submit to demonstrate compliance with these criteria. It also provides firms with feedback on the matching adjustment trial submission process which took place over Summer 2014.
 

On 10 October 2014, the European Commission adopted a Delegated Act which sets out implementing rules for Solvency II. Further information on the Delegated Act can be found on the European Commission’s Solvency II home page.
 
 

September 2014

On 26 September 2014, the PRA confirmed delegate places and published the agenda for its Solvency II Conference on 17 October 2014. Materials from the conference are available under 7. Solvency II Conference: countdown to implementation on the following page.

Solvency II materials

August 2014

On 29 August 2014, the PRA published an update to provide further clarity on progress towards the implementation of Solvency II on 1 January 2016.
 
 
On 22 August 2014, the PRA issued invitations for its Solvency II Conference on 17 October to firms, trade associations and other industry participants. Organisations are asked to register interest in attending by 19 September 2014. Delegates will receive confirmation by no later than 26 September 2014. Materials from the conference are available under 7. Solvency II Conference: countdown to implementation on the following page.
Solvency II materials

On 19 August 2014, the PRA issued an update letter from the PRA's Insurance Directors to all Solvency II-affected life and general insurers.
On 11 August 2014, the PRA published a consultation paper that sets out proposed changes to the PRA’s rules to implement the Solvency II Directive as amended by the Omnibus II Directive. It also contains draft supervisory statements which set out the PRA’s expectations of firms and what firms may expect of the PRA.
 
 

July 2014

On 25 July 2014, the PRA published an update to provide further clarity on progress towards the implementation of Solvency II on 1 January 2016. The PRA will also publish a consultation paper on transposing the Directive into the PRA Rulebook in early August 2014.
 
 

June 2014

On 13 June 2014, the PRA issued three letters to Solvency II-affected life and general insurance firms. The first was from the PRA's Insurance Directors giving an update on Solvency II. The second invited firms to take part in a trial submission to apply to use the matching adjustment; submissions are required by 19 July 2014. The third gave firms additional clarification on the asset eligibility criteria for the matching adjustment.
 
 

May 2014

On 23 May 2014, the PRA issued data collection exercises to a number of life and general insurance firms for response by 22 August 2014. This followed on from the Solvency II non-IMAP approvals survey which was issued on 13 May 2014 for response by 20 June 2014. Further information about these requests can be found in the document issued on 14 April 2014.
 
 
On 1 May 2014, the PRA held an event on technical issues for general insurers intending to use an internal model. The event comprised of four plenary sessions to give feedback on expert judgement, dependencies, one-year insurance risk and the PRA's assessment of insurance risk. The delegate pack from the event is available below.

 Solvency II: event on technical issues for general insurers intending to use an internal model

April 2014

On 25 April 2014, the PRA published Supervisory Statement 5/14 ‘Solvency II: calculation of technical provisions and the use of internal models for general insurers’. The PRA also published feedback on the first stage of a thematic review of technical provisions conducted in 2012, available on the internal model approval process page.

On 16 April 2014, the PRA published Supervisory Statement 2/14 'Solvency II: recognition of deferred tax' for all insurance firms that will be subject to SII, whether life or general, standard formula or internal model. The statement sets out the PRA's expectations of firms in relation to the recognition of deferred tax.
 
 
On 14 April 2014, the PRA published a summary of the data collection exercises it intends to request from life and general insurance firms during 2014 and 2015. The exercises will be similar to those conducted in previous years and the information gathered will be used to help with the preparation for and transition to Solvency II. The first request will be made in early May 2014 and sent directly to all firms. The summary is available below.
 
 
On 2 April 2014, the PRA held an event on technical issues for life insurers intending to use an internal model. Five workshops were held to give feedback on technical issues to help firms develop their Solvency II internal model. The technical issues covered were invested credit risk modelling; dependency and aggregation; longevity risk modelling; market risk; and proxy modelling validation. The delegate pack from the event is available below.
 
 

March 2014

On 17 March 2014, the PRA published a consultation paper on a draft supervisory statement for all general insurers within the scope of the Solvency II Directive. The statement sets out the PRA’s expectations of firms in relation to the calculation of technical provisions and the use of internal models.
 
 
On 11 March 2014, the European Parliament adopted the Omnibus II Directive following a plenary vote. The Council will also formally adopt the Directive before it is published in the Official Journal, and it will enter into force the day after publication. This confirms that
Solvency II remains on course for transposition by 31 March 2015, and implementation on
1 January 2016. See below statement from the European Commission for further information.
 
 

February 2014

On 18 February 2014, the PRA:
  • Published a consultation paper on a draft supervisory statement for all firms within the scope of the Solvency II (SII) Directive. The statement sets out the PRA’s expectations of firms in relation to the recognition of deferred tax in the SII regime.
 
  • Clarified two points contained in Supervisory Statement 4/13 regarding its expectations of firms for the own risk and solvency assessment (ORSA) and the submission of information in the preparatory phase.
 
  • Produced a timetable to early May 2014. This sets out key activity, based on information available at the time of writing, that may be helpful to firms as they make preparations for the new regime.
 
On 7 February 2014, the PRA published feedback on the data collection exercises issued in May 2013. Further information and materials are available on the page below. By the end of Q1 2014 the PRA will give an indication of its plans for Solvency II data collection exercises in 2014 and 2015 for both standard formula and internal model firms.

Notes from the PRA Solvency II regulatory reporting industry working group held in December 2013 are also available on the page below, as well as questions and answers.
 
Preparing for Solvency II

The European Parliament plenary vote on the Omnibus II Directive has been re-forecast from
25 February 2014 to 11 March 2014.

European Parliament - forecasts
 
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