We also published a letter ‘Solvency II: Two and half years on’ to Chief Actuaries of life insurers from Sid Malik, Head of Division of the PRA Life Insurance and Pensions Risk Division.
12 July: We published final policy and a consultation related to Solvency II groups:
Responses to CP15/18 are requested by Monday 12 November 2018.
On Friday 6 July we published Policy Statement 16/18 'Changes in insurance reporting requirements' relevant to all UK Solvency II firms, the Society of Lloyd's and its managing agents and mutuals. This includes updates to rules, Supervisory Statement (SS) 6/18 'Solvency II: National Specific Templates LOG files' which includes updates to National Specific Template LOG files, and an update to SS11/15 'Solvency II: Regulatory Reporting and exemptions' which includes a modification by consent.
29 June: In Consultation Paper 27/17 'Solvency II: Internal models update' we had planned to issue the final policy to take effect from June 2018. We are currently finalising the policy with a view to publishing it shortly.
29 June: In April 2018, we published CP11/18 'Solvency II: Changes in reporting format'.
In CP11/18 we proposed to change the reporting format from Microsoft Excel workbooks to XBRL (eXtensible Business Reporting Language) standards for:
- National specific Templates (NSTs);
- Internal model outputs (IMO);
- Market risk sensitivities (MRS); and
- Standard formula reporting for firms with an approved internal model (SF.01, model drift).
The consultation period is now closed. We received one response. In addressing the feedback received we are keen to ensure firms have a sufficient period to implement proposed changes for year-end 2018 reporting (for year-ends 31 December 2018 onwards).
The following table outlines the planned dates for availability of the required information.
In view of the degree of internal reorganisation and IT infrastructure required by firms to facilitate the migration to the new reporting format, the indicative timelines set out above are intended to assist for planning purposes. For the avoidance of doubt, these dates are approximate and may be subject to change.
12 June: Following engagement with insurers about Supervisory Statement (SS) 3/17, the PRA is planning to consult on an update to the SS that would build on the four key principles currently set out by providing additional clarity about the PRA's expectations for valuation of the no-negative-equity guarantee for the purpose of the effective value test and on the applicability of Transitional Measures on Technical Provisions. We expect to publish the consultation around the end of June or first half of July.
On Wednesday 6 June we published a letter from Sam Woods to the Chair of the Treasury Committee regarding the Solvency II risk margin.
On Thursday 31 May we published a Letter from Anna Sweeney ‘Market conditions facing specialist general insurers: Feedback from recent PRA review work’, addressed to Chief Executives of specialist general insurance firms regulated by the PRA. The letter requests a summary of firms’ responses on the issues raised by Friday 27 July 2018 from PRA Category 1, 2 or 3 firms predominantly operating in the London Market.
On Tuesday 22 May we published Consultation Paper 12/18 ‘Securitisation: The new EU framework and Significant Risk Transfer’, relevant to all PRA-authorised Capital Requirements Directive IV (CRD IV) firms and all Solvency II firms. This consultation closes on Wednesday 22 August 2018.
On Thursday 17 May we published Policy Statement 10/18 'Financial management and planning by insurers', relevant to all UK insurance firms and groups in scope of the Solvency II Directive, and to the Society of Lloyd's and managing agents.
14 May: We are holding a Chief Actuary Forum for general insurers on Monday 2 July targeted at holders of Senior Insurance Management Function (SIMF) 20 Chief Actuary. Please register by Friday 15 June. If you have any queries, please contact PRAeventsmanagement@bankofengland.co.uk.
On Friday 20 April, we published two consultations related to Solvency II regulatory reporting:
Please see Regulatory reporting - insurance sector for more general information on Solvency II regulatory reporting, including templates and instructions.
On Thursday 12 April, we published a letter 'Capital extractions by insurance firms in run-off' addressed to CEOs.
On Wednesday 11 April 2018 we published two consultation papers (CP) relevant to those working in, or with, Solvency II firms. Both consultations close on Wednesday 11 July 2018:
- CP8/18 'Solvency II: external audit of the public disclosure requirement'.
- CP9/18 'Solvency II: Internal models - modelling of the volatility adjustment'.
On Monday 5 March 2018 we gave a presentation on PRA internal model outputs for general insurers at the PRA. The following presentation slides used at the event are available below.
Feedback on data quality and expectations for YE2017
Potential changes to data collection YE2018
On Wednesday 7 February 2018, the Bank of England Electronic Data Submission (BEEDS) user guide was updated to incorporate changes that have been made as part of ongoing system maintenance, as well as important information regarding account practices. For more information, see Regulatory reporting: insurance sector page.
On Wednesday 17 January 2018 we issued an invitation to a briefing taking place on Monday 5 March 2018 to general insurers who submit the internal model outputs to us annually. As places are limited, we are offering one space per firm, with registration closing on Friday 16 February 2018. Information about the briefing on ‘PRA internal model outputs for general insurers’, including how to register, is available on the Bank's event website.
On 11 January 2018, the PRA published Consultation Paper 2/18 ‘Changes in insurance reporting requirements’. This CP is the third and final consultation referred in the News Release of 25 October 2017. Information, templates and guidance on reporting are available on our Regulatory reporting: insurance sector page.