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

17 July 2019: We published a public working draft (PWD) of version 1.1.0 of the Bank of England Insurance XBRL taxonomy to support collection of the proposed changes to National Specific Templates (NSTs), internal model output (IMO), market risk sensitivities (MRS) and standard formula (SF) reporting, alongside related technical artefacts. The taxonomy, data point model (DPM) dictionary, annotated templates and validation rules represent the requirements for Solvency II as set out in CP13/19 ‘Occasional Consultation Paper’. We invite feedback, particularly from firms and software vendors, on the PWD of the taxonomy and DPM artefacts by Wednesday 7 August 2019. We will aim to publish the updated Insurance XBRL taxonomy by the end of October 2019. See the Technical artefacts and support section of the Regulatory reporting – insurance sector page for more information. 

12 July 2019: We published a letter ‘Remuneration requirements – PRA findings and expectations’ from David Rule, Executive Director of Insurance Supervision, to the Chairs of Remuneration Committees of PRA-regulated insurers.

19 June 2019: We published a letter ‘Observations from recent regulatory reviews’ from Sid Malik, Head of Division for Life Insurance and Pensions Risk, to Chief Actuaries of life insurers.

18 June 2019: We published a letter and accompanying materials on the Insurance Stress Test 2019 which asks the largest regulated life and general insurers to provide information about the impact of a range of stress tests on their business. In addition, the stress test includes an exploratory exercise in relation to cyber underwriting and climate change. The set of climate scenarios explores the impacts to both firms' liabilities and investments stemming from physical and transition risks. The PRA will publish a summary of the overall results but no individual firm results will be made public. The deadline for submission is as follows:

  • Sections A and B: 5pm, Monday 30 September 2019
  • Section C: 5pm, Thursday 31 October 2019

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 16 July 2019
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