Insurance waivers, modifications, rule permissions and notifications

Insurance firms need to apply to the Prudential Regulation Authority (PRA) for certain approvals under the Solvency II Directive.

In this section

Insurance rule permissions

The PRA grants rule permissions using a FSMA s138BA rule permission.

Institutions intending to apply should complete the s138BA rule permission application form and any supplementary information forms specific to the permission type as set out on this page.

s138BA rule permission application form

Send your completed application forms for a s138BA permission to PRA-waivers@bankofengland.co.uk.

The consolidated list of Waivers, CRR Permissions and s138BA Rule Permissions granted by us to PRA-authorised firms and to PRA approved holding companies is now available to review on the Waivers, Modifications and Rule Permissions Webpage.

Group SCR

Use of multiple calculations

To apply for permission under FSMA section 138BA to use multiple methods when calculating a Group SCR, please complete the s138BA rule permission application form and the following supplementary information form:

Inclusion of overseas sub-groups

To apply for permission under FSMA section 138BA to include overseas sub-groups when calculating a Group SCR, please complete the s138BA rule permission application form and the following supplementary information form:

Internal model

Firms wishing to apply for permission to use an internal model or to make a change to an existing internal model and/or model change policy must apply for permission under section 138BA of FSMA.

A fee is payable for applications for new internal models. Please see Table E in the Fees Part of the PRA Rulebook.

Please complete the s138BA rule permission application form, the Internal Model supplementary information form, and the Internal Model Application Template (IMAT):

Firms submitting applications should send all their completed application forms and templates to PRA-waivers@bankofengland.co.uk and their usual supervisory contacts.

Any firm intending to submit an application for permission to use an Internal Model is strongly encouraged to discuss their plans and projected timelines with their supervisor before submitting an application. 

Firms should also refer to the following Q&A which provides additional information on the application process:

Loss absorbing capacity of deferred tax

To apply for permission under FSMA section 138BA to recognise the loss absorbing capacity of deferred tax assets (LACDT), please complete the s138BA rule permission application form and the following supplementary information form:

To request the modification by consent (MbC) relating to LACDT please use the relevant form which can be found below in the ‘Insurance Modifications by Consent’ section.

Matching adjustment

To apply for permission under FSMA section 138BA to apply a Matching Adjustment, please complete the s138BA rule permission application form and the Matching Adjustment supplementary information form:

Any firm intending to submit an application to apply a Matching Adjustment is strongly encouraged to participate in the Application Readiness Assessment Process (ARAP). In order to participate in this process firms should complete the following form:

Firms should refer to the following Q&A for practitioners which provides additional information on the application process. The Q&A was last updated on 23 October 2025.

Matching adjustment investment accelerator

To apply for permission under FSMA section 138BA to make use of a Matching Adjustment Investment Accelerator, please complete the s138BA rule permission application form and the matching adjustment investment accelerator supplementary information form:

Firms should refer to the following Q&A for practitioners which provides additional information on the application process. The Q&A was last updated on 23 October 2025.

Matching Adjustment Investment Accelerator Q&A for practitioners (pdf)

Own funds 

Any firm intending to submit an application for an own funds permission should read chapter 1 and the relevant chapter of Statement of Policy Solvency II: The PRA's approach to insurance own funds permissions and should discuss their plans and projected timelines with their supervisor before submitting an application.

Ancillary Own Funds

To apply for permission under FSMA section 138BA to take into account an item of ancillary own funds (AOF) as part of its own funds, please complete the s138BA rule permission application form and the following supplementary information form:

Ancillary Own Funds for an intermediate insurance holding company

If any firm is considering an application in respect of ancillary own funds for an intermediate insurance holding company it should first familiarise itself with the content of (i) Chapter 3 of SoP: The PRA's approach to insurance group supervision and (ii) Chapters 1 and 3 of SoP Solvency II: The PRA's approach to insurance own funds permissions. It may also want to discuss a potential application with its supervisor before submitting an application.

Classification of Own Funds Permissions

To apply for permission under FSMA section 138BA for a classification of an own funds item, please complete the s138BA rule permission application form and read the following guidance:

Own Funds Permissions when not in compliance with the SCR

To apply for Own Funds permissions under FSMA section 138BA when not in compliance with the SCR, please complete the s138BA rule permission application form and read the following guidance:

Prior permission for repayment and redemption between five and ten years for RT1

To apply for permission under FSMA section 138BA to repay or redeem an own funds item within 5 years from the date of issuance, please complete the s138BA rule permission application form and the following supplementary information form:

Prior permission for repayment or redemption of an own fund item

To apply for permission under FSMA section 138BA to repay or redeem an own fund item, please complete the s138BA rule permission application form and the following guidance and supplementary information form:

Prior permissions for early repayment or redemption guidance (DOC) - Chapter 6 of Statement of Policy Solvency II: The PRA’s approach to insurance own funds permissions.

Transitional measures 

Transitional measure on technical provisions

As noted in paragraph 2.1 of the Statement of Policy (SoP): ‘Permissions for transitional measures on technical provisions and risk-free interest rates’ the PRA generally will not consider new applications for transitional measure on technical provisions (‘TMTP’) permission. Any firm intending to submit an application is strongly encouraged to discuss their plans and projected timelines with their supervisor before submitting an application.

Firms wishing to apply for permission to use the TMTP or to vary an existing TMTP must apply for permission under section 138BA of FSMA.

Please complete the s138BA rule permission application form and the following supplementary information form:

Any firm intending to submit an application for a TMTP permission should refer to the Transitional Measures on Technical Provisions Part of the PRA Rulebook and the Statement of Policy (SoP): ‘Permissions for transitional measures on technical provisions and risk-free interest rates’. 

Transitional measure on the risk-free rate

To apply for permission under FSMA section 138BA to apply a transitional measure on the risk-free interest rate (TMIR), firms should send a completed application form and supporting evidence to PRA-waivers@bankofengland.co.uk.

Undertaking specific parameters 

To apply for permission under FSMA section 138BA to apply Undertaking Specific Parameters (USP)

For the purposes of determining the Solvency Capital Requirement (SCR) using the standard formula (SF), an undertaking specific parameter (USP) is a parameter specific to a firm, calculated in accordance with SCR-USP Part of the PRA Rulebook, that replaces a standard parameter (within a subset of parameters in the life underwriting risk module, non-life underwriting risk module, or health underwriting risk module). The corresponding concept for a group is a Group Specific Parameter (GSP).

A firm may apply for regulatory permission to use a USP or GSP. When granting a USP permission, the PRA would exercise its powers under section 138BA (s138BA) of the Financial Services and Markets Act (FSMA) 2000 to modify rules within the SCR-SF and SCR-USP Parts of the PRA Rulebook, or to modify the Group Supervision Part for a group to use a GSP. 

Requirements relating to USPs and GSPs are set out in the SCR-USP and Group Supervision Parts of the PRA Rulebook, respectively. 

Firms and groups seeking to apply for permission to use USPs or GSPs should complete the application form in respect of s138BA permission and submit the following supplementary information form with their application.

Information regarding the PRA’s approach to assessing USP and GSP applications is set out in the Statement of Policy – Solvency II: The PRA’s approach to Standard Formula adaptations.

Volatility adjustment

Firms wishing to apply for permission to use a Volatility Adjustment (‘VA’) or to vary an existing VA must apply for permission under section 138BA of FSMA.

Please complete the s138BA rule permission application form and the Volatility Adjustment supplementary information:

Send your completed application forms for VA permission to PRA-waivers@bankofengland.co.uk.

Any firm intending to submit an application for a VA permission should refer to chapter 8 of the Technical Provisions Part of the PRA Rulebook and the Statement of Policy (SoP): ‘Solvency II: Volatility Adjustment Permissions’. Firms are also strongly encouraged to discuss their plans and projected timelines with their supervisor before submitting an application.

Insurance waivers and modifications

The PRA grants waivers and modifications under FSMA s138A.

Firms wishing to apply should complete the s138A waiver/modification application form and any supplementary information forms specific to the application type as set out on this page.

s138A waiver/modification application form 

Send your completed application forms for a s138A waiver/modification to PRA-waivers@bankofengland.co.uk.

Single Group Own Risk and Solvency Assessment (ORSA)

To apply for a modification under FSMA section 138A for Rule 17.2 of the Group Supervision Part, please complete the s138A waiver/modification application form and the following supplementary information form:

Single Group Solvency and Financial Condition Report (SFCR)

To apply for a modification under FSMA section 138A for Rule 18.1 of the Group Supervision Part, please complete the s138A waiver/modification application form and the following supplementary information form:

Quarterly Reporting Exemption

To apply for a modification under FSMA section 138A for Rule 2.2(1) of the Reporting Part and Rule 17.3 of the Group Supervision Part, please complete the s138A waiver/modification application form and the following supplementary information form:

Notifications

This section contains templates for specific notifications that an insurance firm may need to make in respect of (i) LACDT and (ii) Standard Formula. 

Completed notification forms for both LACDT and Standard Formula should be sent to: SFnotifications@bankofengland.co.uk.

Insurance special purpose vehicles

Any applicant that is planning to use a new UK based Special Purpose Vehicle should discuss these proposals with PRA authorisations, or where applicable, its usual PRA supervisory contact prior to submitting a formal application for authorisation. Applicants should also refer to the insurance special purpose vehicles page for more information.

On 1 November 2017 we published PS26/17 'Authorisation and supervision of insurance special purpose vehicles'. 

Insurance Modifications by Consent (MbC)

  • The PRA is issuing a modification by consent (MbC) for run-off firms that meet the thresholds to be classified as a non-Solvency UK firm (or NDF) but are excluded because they have general insurance, credit and suretyship liabilities. The modification is offered under section 138A of the Financial Services and Markets Act 200 (FSMA).The modification is available to the firm if:

    The firm meets the following thresholds in order to be classified as a non-Solvency UK firm and has not breached them in the last three years:

    1. Annual gross written premiums of less than £25m;
    2. Gross technical provisions less than £50m;
    3. Where the firm belongs to a group, the total of the technical provisions of the group defined as gross of the amounts recoverable from reinsurance contracts and UK ISPVs does not exceed £50,000,000
    4. The business of the firm does not include reinsurance operations exceeding:
      • £2,500,000 of its gross written premium income; or
      • £5,000,000 of its technical provisions gross of the amounts recoverable from reinsurance contracts and UK ISPVs.

    In addition the firm is in run-off and is not expected to write new business where it only has permission for carrying out contracts of insurance.

    If a firm wishes to take advantage of the modification, it should read the direction below and contact PRA-Waivers@bankofengland.co.uk, with a suitable request, copying in their usual supervision contact. The email should include the firm name and reference number. 

    The PRA will confirm in writing whether the request has been granted and will publish the approved modification direction on the Financial Services Register. 

  • Modification by consent of the Solvency II Group Supervision rules 20.1 and 20.2 with reference to US-parented undertakings. This modification is available to insurance and reinsurance undertakings authorised by the PRA, the parent undertaking of which is an insurance holding company or mixed financial holding company which has its head office in the United States.

    The ‘group supervision’ provisions of the Covered Agreement signed by the UK and US on Tuesday 18 December 2018 have come into effect on Thursday 31 December 2020, and as a result provisions of Article 4 dealing with group supervision for US parented groups are fully applicable.

    The PRA is inviting firms with US-parented groups to apply a rule modification to reflect the above Covered Agreement. The application process is standardised and this should improve the administrative efficiency for US-headed insurance groups in meeting UK regulatory requirements. The PRA will continue to issue bespoke individual ‘other methods’ directions only to those firms that meet the conditions set out in Article 4(g) of the Covered Agreement.

    The effect of the modification is that Solvency II Group Supervision rules 20.1 and 20.2 are amended to incorporate the ‘other methods’.

    As a result, each relevant insurance group undertaking and UK insurance holding company will need to provide the PRA a copy of their most recently available Own Risk and Solvency Assessment (ORSA, or equivalent group risk report) within one month of it being reported to a US supervisor. The submission will need to provide at a minimum the elements set out in Article 4(d) of the Covered Agreement, as follows:

    • a description of the insurance or reinsurance group’s risk management framework;
    • an assessment of the insurance or reinsurance group’s risk exposure; and
    • a group assessment of risk capital and a prospective solvency assessment.

    The directions to be issued through this standardised application process will be applicable for a three year period, unless the rule is revoked or ceases to apply.

    If a firm wishes to take advantage of this modification, it should read the direction below and contact PRA-Waivers@bankofengland.co.uk with a suitable request, copying in their usual supervision contact. The email should include the firm name and reference number.

    The PRA will confirm in writing whether the request has been granted and will publish the approved modification direction on the Financial Services Register.

  • The PRA has amended the modification by consent (MbC) available to regulated insurers which are either insolvent or in an insolvency proceeding, including those which were previously in an insolvency proceeding but which are currently operating a Court sanctioned Scheme of Arrangement. The MbC facilitates a proportionate approach to their supervision while ensuring that these firms meet their regulatory requirements. The MbC has been updated following PS15/24 - Review of Solvency II; Adapting to the UK insurance market.

    The PRA will confirm in writing whether the request has been granted and will publish the approved modification direction on the Financial Services Register.

  • The PRA has updated the modification by consent (MbC) for all third-country insurance branches to exclude risks that are not located in the UK from certain rules. Where third-country insurance branches solely write risks that are not located in the UK, the MbC also offers relief from certain regulatory reporting requirements. The MbC has been extended to 30 June 2029 and has been updated PS15/24 - Review of Solvency II: Adapting to the UK insurance market.

    Category 3 and 4 branches that consent to both modification by consent of Solvency II Reporting 2.2(1) for third country insurance branches and this MbC, and solely write risks that are not located in the UK, need to report IR.05.02.01 (in relation to non-UK risks) as stated in this MbC, despite the waiver in the former MbC (Reporting 2.2(1) for third country insurance branches). This will enable the PRA to have sight of the size of the non-UK risks (continuing existing expectations from the deleted S.05.01.01 template).

    If a firm wishes to take advantage of this modification, it should read the direction below and contact PRA-Waivers@bankofengland.co.uk, with a suitable request, copying in their usual supervision contact. The email should include the firm name and reference number.

    Firms already using this MbC can expect to be contacted by the PRA to consent to a variation of their current MbC.

  • The PRA has updated the Modification by consent (MbC) to give third-country insurance branches that solely write risks that are not located in the UK (non-UK risks), relief from Article 49 of the Reporting Part of the PRA Rulebook, which relates to the resolution report.
    As before, the MbC continues to:

    • Offer for all third-country insurance branches an exclusion of non-UK risks from certain rules relating to branch provisions;
    • Offer relief from certain regulatory reporting requirements where third-country insurance branches write solely non-UK risks.

    The MbC has been extended to 30 June 2030.

    Category 3 and 4 branches that consent to both the modification by consent of Solvency II Reporting 2.2(1) for third country insurance branches and this MbC, and solely write non-UK risks, need to report IR.05.02.01 (in relation to non-UK risks) as stated in this MbC, despite the waiver in the former MbC (Reporting 2.2(1) for third country insurance branches). This will enable the PRA to have sight of the size of the non-UK risks (continuing existing expectations from the deleted S.05.01.01 template).

    If a firm wishes to take advantage of this modification, it should read the direction below and contact PRA-Waivers@bankofengland.co.uk, with a suitable request, copying in their usual supervision contact. The email should include the firm name and reference number.

    Firms writing solely non-UK risks already using this MbC can expect to be contacted by the PRA to consent to an updated version of their current MbC.

  • The PRA has amended the modification by consent (MbC) that exempts Category 3 and 4 insurance firms (solo or part of a group) from reporting to the PRA the solo templates in the Reporting Part of the PRA Rulebook with a frequency of less than one year (ie quarterly reporting), subject to Table A in the Statement of policy - Solvency II regulatory reporting waivers. The MbC has been updated following PS15/24 - Review of Solvency II: Adapting to the UK insurance market. It does not apply to firms seeking modification at a Group level, who should apply via the standard waiver/modification form above and refer to the following questionnaire.

    If a firm wants to take up this modification by consent it should read the direction below and contact the PRA at PRA-waivers@bankofengland.co.uk with a request for the modification (listing all relevant solo regulated entities and their reference numbers).

    The PRA will confirm in writing whether the request has been granted and will publish the approved modification direction on the Financial Services Register.

  • The PRA is issuing a modification by consent (MbC) for Category 3 and 4 third country insurance branches for relief from some quarterly and annual templates following PS15/24 - Review of Solvency II: Adapting to the UK insurance market.

    This new MbC is based on the new Statement of policy - Solvency II regulatory reporting waivers (effective from 31 December 2024) and combines quarterly relief currently set out in Solvency II Reporting 2.2(1) MbC (category 3 and 4 branches), as well as the annual relief described in the current version of SS44/15 (category 4 branches). This version of SS44/15 will lapse at the end of 30 December 2024 and a new version will come into force. Concurrently, the quarterly and annual relief set out in this new MbC will come into force from 31 December 2024 and will be applicable to all category 3 and 4 branches. 

    As above, for the quarterly reporting relief, Category 3 and 4 branches have been able to consent to a rule modification in relation to Solvency II Reporting 2.2(1).

    If a firm wishes to take advantage of the modification, it should read the direction below and contact PRA-Waivers@bankofengland.co.uk, with a suitable request, copying in their usual supervision contact. The email should include the firm name and reference number. 

    The PRA will confirm in writing whether the request has been granted and will publish the approved modification direction on the Financial Services Register.

  • The PRA is offering a modification by consent (MbC) to modify rule 6.4(3) in the SCR-SF part of the PRA Rulebook and other relevant consequential rule modifications. This is being offered as a permission under s138BA of FSMA. The MbC allows a firm to recognise a limited increase in deferred tax assets (DTA) within its calculation of LACDT adjustment, specifically up to 5% of the Gross SCR Scenario (as defined in chapter 4 of the PRA Statement of Policy – Solvency II: The PRA's approach to Standard Formula adaptations). This is permissible when it is probable that future taxable profits will be available to utilise against an increase in DTA following the instantaneous loss referred to in rule 6.4(1) in the SCR-SF Part of the PRA Rulebook.

    The MbC is available to firms that calculate LACDT using the Solvency II Standard Formula rules and have a reported ratio of eligible own funds to SCR not less than 175%.

    Further information about MbC eligibility and how the permission operates is set out in paragraphs 4.8 to 4.11 of the PRA Statement of Policy – Solvency II: The PRA’s approach to Standard Formula adaptations. 

    Firms that are eligible and wish to apply for the modification should complete the s138BA permission application form below:

    Additionally, firms should complete the relevant sections related to MbC permission in the supplementary information form found here:

    Firms should send completed application forms for LACDT permission to PRA-Waivers@bankofengland.co.uk, copying in their usual supervisory contact.

    The PRA will confirm in writing whether the request has been granted and, if granted, it will publish the approved modification Written Notice in respect of each firm on the Financial Services Register.

     

  • The PRA has updated the modification by consent (MbC) for all pure reinsurance third-country branches to waive the PRA Rules on third-country branch investments. The MbC has been extended to 31 July 2029 and has been updated following PS15/24 - Review of Solvency II: Adapting to the UK insurance market whereby most of the previous MbC content will be absorbed into the Rules, effective from 31 December 2024.

    If a firm wishes to take advantage of this modification, it should read the direction below and contact PRA-Waivers@bankofengland.co.uk, with a suitable request, copying in their usual supervision contact. The email should include the firm name and reference number.

    Firms already using this MbC can expect to be contacted by the PRA to consent to a variation of their current MbC.

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This page was last updated 25 August 2026