Results of the firm feedback survey 2022

Survey results 2022

Results of the firm feedback survey 2022

Each year, we seek input from firms on the effectiveness and quality of our supervisory framework and approach. One of the ways we do this is through the annual firm feedback survey. This process is overseen by a team independent of frontline supervision. We conducted the survey from August to October 2022.

We value firms’ participation in the survey. As the regulatory landscape evolves, we seek to understand, both what firms think works well, and what we might do differently. Through the survey, PRA-authorised firms provided feedback on a number of topics, including:

• our understanding of firms;
• the firms’ understanding of our regulatory objectives and expectations;
• our level of challenge to firms;
• the effectiveness of our relationship with firms;
• our co-ordination with other regulators and data requests;
• the clarity and accessibility of prudential policy, rules, and requirements;

We invite firms to make additional comments in these areas, and address topical questions surrounding PRA Supervision. The 2022 Survey topical questions examined the clarity and timeliness of operational resilience policy and post-Covid-19 supervision, both of which, overall, received positive comments. We also ask firms to suggest three improvements for the PRA.

Which firms were included in the 2022 survey?

As in previous years, we sent a standardised survey to a sample of firms, which covers all types of firms that the PRA supervises. As part of the 2022 Survey, we resumed meetings with a cross-section of firms to discuss their views in more detail. This is something we used to do prior to Covid-19, and plan to continue in the 2023 Survey.

How are the survey results used?

We analyse firms’ responses to identify areas where we could improve how we supervise firms, and good practices we should maintain and apply more broadly where appropriate. This analysis is reported to our senior management and committees, and is shared with the PRA’s Practitioner Panel. We also follow up on the points raised by firms, including with the relevant supervisory directorate, being mindful of any confidentiality and sensitivity issues.

Main messages from the 2022 survey and our response

Despite a slight decline in scores from 2021, the scores remain high and indicate, overall, firms continue to hold positive views about the PRA. Firms provided the most positive scores in regard to their understanding of the PRA’s statutory objectives and expectations, however, as in previous years, they provided the lowest scores regarding their views on the PRA’s coordination with other regulatory bodies.

Five emergent themes from the 2022 survey were identified, and are outlined below, alongside explanation of how we are responding:

Emerging theme	PRA’s response
Firms perceived a slight decline in the quality of overall supervisory relationships	The return to business-as-usual supervision post-Covid should help strengthen relationships between the PRA and management at firms. We are also reviewing our internal training delivery, to ensure newly appointed and experienced supervisors are fully supported in building their technical and non-technical skills.
Firms desired greater engagement on new and revised policy	In September, we published DP4/22, describing how we intend to approach policymaking, given our wider rule-making responsibilities under the FSM Bill. DP4/22 aims to enhance our engagement with firms, as we prepare to take on this expanded role.
Firms desired more effective engagement with specialists and technical teams	We have formulated a set of principles, with the aim of providing co-ordination between specialists and supervision teams internally, which should lead to increased effectiveness in the delivery of our technical judgements to firms.
Firms expressed increased need for more proportionality in supervision in their responses this year	We have been developing a more proportionate approach to supervision, including through the review of Solvency II, the consultation on liquidity and disclosure requirements for simpler-regime firms and embedding the supervisory approach around the new risk model which expects only core assurance work for in-tolerance firms.
Several newly authorised insurance branches which had previously passported into the UK from the EU asked for a more holistic approach to branch supervision	We have increased communications with firms and reduced reporting requirements. We are also considering delivering a CP proposing a more ‘holistic’ approach to the supervision of third country insurance branches.

When should firms expect to receive the 2023 survey?

The sample of firms selected to participate in the 2023 survey can expect to receive a notification in September 2023.

The set of questions for the 2023 survey will remain similar to those included in the 2022 survey.