This consultation paper seeks feedback on a draft supervisory statement that sets out the Prudential Regulation Authority’s expectations of firms where it has an option to specify a different approach to that published in the Implementing Technical Standards (ITS) for the Solvency II reporting templates and the Solvency II public disclosure templates.
CP25/15 will be of interest to all UK insurance firms and groups within the scope of Solvency II, the Society of Lloyd’s, and to third country branches where applicable.
Summary of proposals
The ITS in specific circumstances, give supervisory authorities options to specify different approaches to the default set out in the standards, or requires supervisory authorities to issue instructions.
The draft supervisory statement sets out the PRA’s expectation of how firms are to comply with the standards when options are provided to supervisory authorities in the following areas:
- Solvency II reporting currency.
- Exchange rates.
- Accident or underwriting year reporting.
- Claim size brackets for loss distribution risk profile.
- Sum insured size brackets for non-life distribution of underwriting risks by sum insured.
- Lines of business to be reported for non-life distribution of underwriting risks by sum insured.
- Reporting of annuities stemming from non-life obligations by currency.
- Development of the distribution of reported but not settled (RBNS) claims - reporting number of claims.
- Reporting external credit ratings.
- Group reporting where the PRA is the group supervisor and there are no consolidated financial statements at the head of the insurance or reinsurance group.
This consultation closed on Monday 21 September 2015.