Insurance firms in run-off

An insurance firm is in ‘run-off’ when it has stopped issuing new contracts of insurance. 

Overview

The prudential issues insurers must consider when entering into run-off, and for the duration of the run-off, are listed below.

We also refer firms to a letter we issued in July 2016 reminding firms of their continuing responsibilities in the way they interact with us when in run-off. The letter includes reference to Threshold Conditions, Fundamental Rules and the PRA Rulebook.

These requirements cover prudential issues only. For conduct issues, firms should contact the Financial Conduct Authority (FCA).

The removal of effecting permissions

Removal of effecting permissions: Solvency II firms

Removal of effecting permissions: non-Directive firms

Applications to remove permissions must be submitted as a variation of permissions notification via the Financial Conduct Authority's Connect system

Submitting a draft scheme of operations

Submitting schemes of operation: Solvency II firms

Submitting schemes of operation: non-Directive firms

We will expect the scheme of operations to include the wording that addresses our expectations, as set out in Capital extractions by run-off firms within the general insurance sector - SS4/14, which are that:

  • firms in run-off hold sufficient regulatory capital to continue to meet their obligations to policyholders as they fall due for the duration of the run-off
  • firms satisfy themselves and us that this remains the case after a proposed capital extraction.

Part IV cancellations

Part IV cancellations: Solvency II firms

Part IV cancellations: non-Directive firms

Applications for Part IV cancellations must be submitted via the FCA's Connect system.

This page was last updated 30 April 2018
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