Solvency II

Solvency II sets out regulatory requirements for insurance firms and groups, covering financial resources, governance and accountability, risk assessment and management, supervision, reporting and public disclosure.

Background

Solvency II came into force on 1 January 2016. You can see the full directive, and read more about Solvency II from the European Insurance and Occupational Pensions Authority.

Firms can apply for a Solvency II approval, a waiver or modification of rules, and find out about regulatory reporting under Solvency II.

Please see The National Archives for historic Solvency II information.

Latest Solvency II updates

25 July 2022: On Friday 15 July 2022, the PRA hosted a virtual roundtable to engage with Solvency II Technical Information (TI) industry users in order to: receive feedback on the first year and a half of operation; capture suggestions for improvement; and consider whether an SII TI users group should be established. 

The PRA has been successful in producing and publishing the TI by the legal deadline of the 8th working day for quarterly publications, and for some time now has been achieving this by the 6th working day of each month. However, we did have comments from some of the firms that they were finding the later publication, relative to EIOPA, a challenge in the context of their reporting processes. We had explained that the publication timing reflected the many checks that were in place for the TI, including comparisons with the EIOPA results themselves. With this in mind, firm representatives confirmed that they would appreciate a compensating extension to their current reporting deadline. We looked into the practicalities of providing an extension to firms. However, upon investigating, we have identified that we do not presently have the powers to make such changes. In the meantime, individual firms could make a case to their supervisors if they were not able to meet the reporting deadlines.

We were pleased to hear that firms are content with the format of the TI publication templates, as these have been adapted from EIOPA’s so that firms were required to make minimal changes to their systems to use the rates. We did take a note that firms are having to regularly monitor the PRA publication webpages to know when to download our latest Excel templates, unlike for EIOPA which releases an intended publication date in advance. We will look into this as well, with a view to providing more support to firms.  

We do plan to hold another virtual open roundtable sometime in the autumn, to further our engagement with the industry and to share results from the annual review of the Deep, Liquid and Transparent (DLT) assessment of the underlying market data that is fed into the TI production process.

12 July 2022: We published CP10/22 ‘Insurance special purpose vehicles: Further updates to authorisation and supervision’, which sets out our approach to authorising and supervising Insurance Special Purpose Vehicles. 

8 July 2022: Sam Woods gives a speech at a Bank of England webinar, discussing opportunities to reform insurance regulation, to make it work better for the UK economy while safeguarding policyholders.

7 July 2022: We have been responsible for publishing the Solvency II Technical Information (SII TI) since Thursday 31 December 2020. On Friday 15 July 2022, we will be hosting a virtual roundtable between 1.30pm and 3pm. The purpose of the roundtable is to engage with industry users to receive feedback on this initial period of operation, to capture suggestions for improvement, and to consider whether an SII TI users group should be established.

The event will be relevant for all insurance firms. Representatives from industry bodies and advisors to firms are welcome to attend.

If you are interested in attending the PRA Industry Engagement Roundtable, please contact your relevant supervisor, and InsuranceData@bankofengland.co.uk. Dial-in details will be sent to attendees prior to the event.

7 July 2022: We published PS6/22 – Solvency II: definition of an insurance holding company, relevant to insurance firms within the scope of the Group Supervision Part of the PRA Rulebook and to the Society of Lloyd’s. The change to the Glossary Part of the Rulebook and the expectations set out in the updated SS9/15 will come into effect on Friday 7 July 2023.

6 July 2022: We published a statement on the recalculation of the Transitional Measure on Technical Provisions (TMTP), relevant to PRA-regulated insurance firms. 

Solvency II news and publications

  • Insurance aggregate data quarterly report 

    This report is a quarterly statistical release of aggregated data, produced using PRA regulatory data supplied by UK authorised insurance firms.

    The insurance aggregate data quarterly report and data file are scheduled to be updated on: 

    • 30 September 2022
    • 30 December 2022

    Insurance aggregate data annual report

    This report is an annual statistical release of aggregated data, produced using PRA regulatory data supplied by UK authorised insurance firms.

    The insurance aggregate data annual report and data file are scheduled to be updated on: 

    • 30 June 2023
    • 28 June 2024
This page was last updated 10 August 2022

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