This supervisory statement sets out the PRA’s expectations of general insurers in relation to the calculation of technical provisions and the use of internal models.
The statement expands on the PRA’s general approach as set out in its insurance approach document. As part of the PRA’s preparations for the Solvency II regime, this statement seeks to ensure that firms set an adequate level of technical provisions and hold sufficient capital. The PRA’s consultation on this supervisory statement closed on 14 April 2014.
This statement is intended to apply to all general insurers within the scope of Solvency II.