Reporting requirements for non-Solvency II insurance firms

Policy Statement 19/16 | Consultation Paper 18/16

Published on 30 June 2016

Reporting requirements for non-Solvency II insurance firms - PS19/16

This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 18/16 ‘Reporting requirements for non-Solvency II insurance firms’.

It sets out final rules for the new reporting requirements that apply to insurance firms that are outside the scope of Solvency II. Collectively, these firms are referred to as non‐Directive firms (NDFs).

There are in general, separate parts of the PRA Rulebook for friendly societies and other insurers. The PRA has separated the reporting rules applying to friendly societies and other NDFs into two distinct parts to reflect the different regimes and requirements. 

The appendices of this PS contain the following rules:

  • New Rulebook Part - Non-Solvency II firms: Insurance Company – Reporting, which set out the new reporting requirements for NDFs (except friendly societies).
  • New Rulebook Part - Non-Solvency II firms: Friendly Society – Reporting, which set out the new reporting requirements for NDF friendly societies.
  • Consequential amendments: amendments to the PRA Rulebook to reflect the implementation of the NDF reporting regime. 

The appendices also include links to updated forms. These are also available on the dedicated webpage for non-Directive firms. 

There was one main change to the proposal following the consultation to remove the ongoing requirement for friendly societies to appoint an actuarial function holder and a with-profits actuary. This change is discussed further in paragraph 2.6 of the PS.

PDFPolicy Statement 19/16

Appendices

  1. PRA RULEBOOK: NON-SOLVENCY II FIRMS: INSURANCE COMPANY – REPORTING INSTRUMENT 2016
  2. PDFDownload PDF
  3. Non-Solvency II Firm (except friendly societies) reporting templates
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  5. PRA RULEBOOK: NON-SOLVENCY II FIRMS: FRIENDLY SOCIETY - REPORTING INSTRUMENT 2016
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  7. Non-Solvency II Firm - friendly society - reporting templates
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  9. PRA RULEBOOK: GLOSSARY AND INSURANCE CONSEQUENTIALS INSTRUMENT 2016
  10. PDFDownload PDF

Published on 3 May 2016

Reporting requirements for non-Solvency II insurance firms – CP18/16

This consultation paper (CP) sets out proposals for new reporting rules in the Prudential Regulation Authority (PRA) Rulebook that would apply to insurance firms that are outside the scope of Solvency II from 1 January 2016. Collectively, these firms are referred to as non-directive firms (NDFs). 

This consultation proposes to update the current rules which apply to NDFs: transposing PRA Handbook material relevant to NDFs into the Rulebook format; amending the reporting rules following the changes to the prudential regime for non-Solvency II insurance firms published in policy statement 26/15 ’The prudential regime, and implementation of the Senior Insurance Managers Regime, for non-Solvency II firms’; and, where possible, proposes to simplify some of the requirements.

In CP27/15 ‘The prudential regime for non-Solvency II insurance firms and consequential amendments’, the PRA consulted on transposing PRA Handbook material relevant to NDFs into the Rulebook format. These proposals included the deletion of the Handbook modules IPRU(INS) and IPRU(FSOC). CP27/15 noted that firms would be required to comply with reporting rules contained in Chapter 9 of IPRU(INS) or Chapter 5 of IPRU(FSOC) until 31 December 2015, with the PRA proposing new rules in 2016. This CP sets out those proposals.

Summary of proposals

In line with the PRA’s general approach to transposing material from the PRA Handbook to the Rulebook, the PRA proposes to consolidate the Handbook material into new or existing parts. In this CP, the PRA proposes to create two new Rulebook Parts within the Non-Solvency II Firms sector: 

(i)         Insurance Company – Reporting; and
(ii)        Friendly Society - Reporting. 

This table maps modules from the PRA Handbook to the corresponding Rulebook Part.

Handbook Module  Rule Part 
IPRU(INS) Chapter 9  Non Solvency II Firms – Insurance Company - Reporting
IPRU(INS) Appendix 9.1,  9.2,  9.3, 9.4, 9.5, 9.6, 9.8  Non Solvency II Firms - Insurance Company - Reporting and Supervisory Statement
IPRU(FSOC)5.2, 5.3. 5.13, 5.21-25  Non Solvency II Firms - Friendly Society - Reporting


Responses

This consultation closed on Monday 13 June 2016.

The PRA plans to publish a policy statement with feedback and final policy in summer 2016. 

Due to the size of the documents and to be helpful to readers, the PRA has split the CP into six files. The Consultation Paper also includes Appendix 3. Appendices 1, 2, 4, 5 and 6 are attached separately.

PDFConsultation Paper 18/16 (including appendix 3)

Appendix 1

PDFDraft rule: PRA Rulebook: Non-Solvency II firms: Insurance company reporting instrument

Appendix 2

PDFDraft non-Solvency II Firm (except friendly societies) reporting templates 

Appendix 4

PDFDraft rule: PRA Rulebook: Friendly Society - Reporting Instrument

Appendix 5

PDFDraft non-Solvency II firm - friendly society - reporting templates

Appendix 6

PDFDraft rule: PRA Rulebook: Glossary and insurance consequentials instrument

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