This supervisory statement adds to ‘The Prudential Regulation Authority’s (PRA’s) approach to insurance supervision’ and supplements Supervisory Statement (SS) 44/15 ‘Solvency II: third-country insurance and pure reinsurance branches’. It clarifies how the PRA will authorise and supervise third-country insurance branches. Third-country insurance branches are branches of insurers operating, but not headquartered, in the United Kingdom that are not able to benefit from passporting rights. In particular, this statement sets out the PRA’s expectations on when a subsidiary would be more appropriate than a branch for a third-country insurer wishing to carry out insurance business in the United Kingdom.
This supervisory statement is relevant to all third-country insurance branches, as well as to any insurer not headquartered in the United Kingdom looking to operate in the United Kingdom in the future. This statement does not apply to Swiss General Insurers, as defined in the PRA Rulebook, to which different requirements apply pursuant to the Swiss Treaty Agreement (No. 91/370/EEC).
The PRA will keep the policy under review to assess whether any changes will be required due to changes in the UK financial system or regulatory framework, including those arising once any new arrangements with the EU take effect.