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

31 March 2021: We published our review of Solvency II Effective Value Test parameters, applicable from 31 March 2021.

18 March 2021: We published PS2/21 ‘Solvency II: The PRA’s expectations for the work of external auditors on the matching adjustment’, which includes updates to SS11/16 ‘Solvency II: External audit of, and responsibilities of the governing body in relation to, the public disclosure requirement’.

This PS is relevant to UK Solvency II firms (including mutuals) that have approval to make use of the matching adjustment (MA). It is especially relevant to those firms that are subject to an audit requirement in respect of their Solvency and Financial Condition Report (SFCR). The PS is also relevant for the auditors of such organisations and the users of these SFCRs.

The changes to SS11/16 will be effective from Thursday 1 July 2021, and the updated version will replace the existing version at that date. The new expectations set out in the updated SS will come into effect for audits in respect of accounting periods ending on or after Thursday 1 July 2021.

Solvency II news and publications

This page was last updated 30 March 2021

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