Financial management and planning by insurers – SS4/18
This supervisory statement (SS) is addressed to all UK firms and groups that fall within the scope of the Solvency II Directive (‘the Directive’), and to the Society of Lloyd’s and its managing agents (collectively referred to as ‘insurers’), and sets out the PRA’s expectations concerning:
(a) the development and maintenance of a risk appetite statement by insurers;
(b) how insurers apply their risk appetite when developing and monitoring their medium term business and financial plans; and
(c) the assessment of the suitability and sustainability of capital distribution plans in the context of this risk appetite.
This SS should be read in conjunction with:
- the Conditions Governing Business and Investments Parts of the PRA Rulebook;
- Articles 258 – 267 of the Commission Delegated Regulation (EU) 2015/35;
- the ‘PRA’s approach to insurance supervision’;
- SS41/15 ‘Solvency II: applying EIOPA Set 2, System of Governance and ORSA Guidelines’;
- SS5/16 ‘Corporate Governance: Board responsibilities’;
- SS19/16 ‘Solvency II: ORSA’;
- SS4/17 ‘Cyber insurance underwriting risk’; and
- SS5/17 ‘Dealing with a market turning event in the general insurance sector’.