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Home > Prudential Regulation Authority > Smaller insurers
 

Smaller insurers

Smaller insurers  |  Solvency II  |  Non-Directive firms  |  FAQs  |  Seminars

The PRA has two statutory objectives: to promote the safety and soundness of firms; and specifically for insurers, to contribute to the security of an appropriate degree of protection for policyholders. In doing so, it takes a proportionate approach to supervision and focuses its resources on firms that pose the greatest risk to policyholders and to the wider financial system. This page includes updates for smaller insurers and the PRA’s approach to supervision including contact details. 
 

The PRA's approach to supervision

At an individual level, smaller insurers have the lowest impact on the stability of the financial system. This motivates a baseline level of supervisory monitoring so that the PRA:
 
  • supervises firms on a portfolio basis using automated tools to analyse regulatory returns;
  • examines individual insurers when a risk crystallises (as discovered through, for example, a visit to the insurer or an approach from the insurer itself), or in response to authorisation requests from the insurer;
  • conducts peer group analysis across sectors as a whole to develop a clear understanding of the risks posed by both small insurers in aggregate and by a typical insurer; and
  • conducts annual assessments of these insurers in large peer groups.
 
Smaller insurers do not have an individual named supervisor and will not be visited by the PRA on a regular basis. However, all insurers - regardless of category - could be subject to on-site work by the PRA (with some period of notice) at any time.
 
The Smaller Insurers Supervisory Group works in conjunction with a centralised Firm Enquiries Function that should be a firm’s first port of call for routine supervisory queries.

Phone:  020 3461 7000 (operating hours 9am - 5pm)
Email:    PRA.FirmEnquiries@bankofengland.co.uk

Firms are reminded that the conduct supervision of their firm will be undertaken by the Financial Conduct Authority (FCA). The point of contact for life and general insurance firms is firm.queries@fca.org.uk.

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