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.

Latest Solvency II updates

18 September 2019: We published Consultation Paper 22/19 ‘Solvency II: Prudent Person principle’. Responses to the consultation are requested by Wednesday 18 December 2019.

16 September 2019: In line with Supervisory Statement 6/16 ‘Maintenance of the ‘transitional measure on technical provisions’ under Solvency II’, we have been monitoring market conditions since the previous biennial transitional measure on technical provisions (TMTP) recalculation (as at 31 December 2017), and also have been considering whether changes in market conditions since the end of June can reasonably be considered to have been sustained. In our view, if the current market conditions persist we would be willing to accept applications from firms to recalculate TMTP as at Monday 30 September 2019. In any application, we expect firms to be able to demonstrate that a material change in risk profile has occurred. This is relevant to all firms with current TMTP approval.

Firms should note that in order to expedite the application process, we would expect applications at this time to use firms’ existing TMTP calculation methodology. Applications received at this time would be in addition to the expected biennial TMTP recalculation as at Tuesday 31 December 2019.

If you have any questions, please get in touch with your usual supervision contact in the first instance.

1 August 2019: We published a letter ‘Proxy modelling survey: Best observed practice’ from Sid Malik, Head of Division for Life Insurance and Pensions Risk, to Chief Risk Officers of life insurers.

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.

Solvency II news and publications

This page was last updated 17 September 2019
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