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

14 March 2019: We published an update on the EU withdrawal webpage aimed at firms looking to use the Part VII of the Financial Services and Markets Act (FSMA) insurance business transfers: Saving Provisions available in the Financial Services (Miscellaneous) (Amendment) (EU Exit) Regulations 2019. Any insurers with EEA business contemplating undertaking a Part VII and whose transfer is not already underway, should make immediate contact with their PRA supervisory contact, or email the PRA Part VII Transfers team at Portfolio.Transfers@bankofengland.co.uk.

14 March 2019: We published Policy Statement 9/19 ‘Solvency II: Group own fund availability’, and an updated Supervisory Statement 9/15 ‘Solvency II: Group supervision’.

5 March 2019: The Bank of England issued a news release ‘Bank of England and Financial Conduct Authority agree Memoranda of Understanding (MoUs) with EIOPA and EU insurance supervisors’.

5 March 2019: We published Consultation Paper 4/19 ‘Liquidity risk management for insurers’. Responses are requested by Wednesday 5 June 2019.

20 February 2019: We published PS4/19 ‘Solvency II: Adjusting for the reduction of loss absorbency where own fund instruments are taxed on write down’, an updated SS3/15 ‘Solvency II: The quality of capital instruments’, and a reporting clarification.

13 February 2019: We published PS3/19 ‘PRA fees and levies: Changes to periodic and transaction fees’, including amendments to the PRA Fees part of the Rulebook and an update to SS3/16 ‘Fees: PRA approach and application’. These updates come into effect on Friday 1 March 2019.

7 February 2019: The Bank of England has updated the Solvency II XBRL filing manual to help firms and software vendors create XBRL instance documents for Solvency II Pillar 3 reporting in light of the EIOPA Solvency II Taxonomy 2.3.0 hotfix update. See Technical artefacts and support on the Regulatory reporting – insurance sector page. We are planning to publish a further update to the filing manual in Spring 2019, to include updates to the NST sections following publication of Policy Statement 21/18 ‘Solvency II: Changes to reporting format’. For reporting against the Bank of England insurance taxonomy, the Bank will adopt the same filing rules articulated for Solvency II reporting (in the Solvency II filing manual), where appropriate.

5 February 2019: We published Consultation Paper 3/19 ‘Solvency II: Longevity risk transfers - simplification of pre-notification expectations’. Responses are requested by Monday 6 May 2019.

5 February 2019: We published the ‘PRA response to DWP consultation paper: Defined benefit pension scheme consolidation’.

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.

The National Archives

Solvency II news and publications

This page was last updated 14 March 2019
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