Technical Provisions

Policies relating to the technical provisions applying to the valuation and recognition of assets and liabilities for Solvency 2 insurers.

PRA Rules

UK legislation

  • Valuation of technical provisions - Commission Delegated Regulation (EU) 2015/35 (Title I, Chapter III)
  • Matching Adjustment – The Solvency 2 Regulations 2015 (SI 2015/575) (Regulation 42)
  • Volatility Adjustment – The Solvency 2 Regulations 2015 (SI 2015/575) (Regulation 43)
  • Transitional Measures on Risk-free Interest Rates – The Solvency 2 Regulations 2015 (SI 2015/575) (Regulation 53)
  • Transitional Measures on Technical Provisions – The Solvency 2 Regulations 2015 (SI 2015/575) (Regulation 54)

UK technical standards

  • Procedures to be followed for the supervisory approval of the application of a matching adjustment - Commission Implementing Regulation (EU) 2015/500, as amended, including by the Technical Standards  (Solvency II Directive & Institutions for Occupational Retirement Provision Directive) (EU Exit) Instrument 2019, Annex F

Supervisory Statements and Statements of Policy

  • Solvency II: supervisory approval for the volatility adjustment (SS23/15)
  • Solvency II: Internal models – modelling of the matching adjustment (SS8/18)
  • Solvency II: Matching adjustment (SS7/18)
  • Solvency II: illiquid unrated assets (SS3/17)
  • Solvency II: surplus funds (SS13/15)
  • Solvency II: approvals (SS15/15)
  • Solvency II: transitional measures on risk-free interest rates and technical provisions (SS17/15)
  • Solvency II: calculation of technical provisions and the use of internal models for general insurers (SS5/14)
  • The PRA’s approach to the publication of Solvency II technical information (Statement of Policy)
  • Maintenance of the 'transitional measure on technical provisions' under Solvency II (SS6/16)
  • Pension Obligation Risk: treatment under the Individual Capital Adequacy Standards (ICAS) for Insurers (LSS6/13)

Other relevant material

Guidelines originally issued by European Supervisory Authorities should be read in conjunction with "Interpretation of EU Guidelines and Recommendations: Bank of England and PRA approach after the UK’s withdrawal from the EU" (Statement of Policy)

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This page was last updated 31 January 2023