Category: Solvency II

#Brexit & Solvency II: Cooley publishes evidence submitted to Treasury Committee’s Solvency II inquiry

The UK’s Treasury Select Committee (TSC) opened a Solvency II Inquiry in September 2016. The Inquiry, which is part of the TSC’s broader work on the UK’s post-#Brexit relationship with the EU, is considering (eg) the merits of: “retaining the effect of Solvency II as at the date of Brexit, but not […]

Solvency II and the standard formula SCR: Commission & EIOPA review – next steps

The European Commission has identified Solvency II as “one area where significant improvements could be achieved“, for example, by “simplification” and better “technical consistency“. So, when it published its Call for Advice in July 2016, the Commission asked EIOPA to look at the “proportionate and simplified application of the requirements, and removal […]

Solvency II: Group supervision – PRA to update supervisory statement

The PRA has just published “Consultation Paper | CP38/16 Solvency II: group supervision“. The consultation proposals are intended to clarify which parts of the PRA’s “Solvency II: An update on implementation” letter of 25 July 2014 are still current, by drawing them into a more widely updated version of its existing  […]

Solvency II: the PRA on monitoring model drift & standard formula reporting for internal model firms

The UK’s Prudential Regulation Authority has published a brief Supervisory Statement, “SS15/16 Solvency II: Monitoring model drift and standard formula SCR reporting for firms with an approved internal model“. The PRA has long been concerned that internal model quality and output-reliability will gradually fall, if (re)insurers aren’t encouraged to maintain their […]

Solvency II: infrastructure investments & ELTIFs Implementing Regulation published in the Official Journal

On 2 April 2016, Solvency II was amended (by Commission Delegated Regulation 2016/467) to: Include a new asset class: qualifying infrastructure investments; Bring the treatment of investments in European Long-Term Investment Funds (ELTIFs) into line with the treatment of investments in European Venture Capital Funds, and European Social Entrepreneurship Funds (EuVECAs […]

Solvency II: EIOPA on regulatory certainty, and legislative review

Like most modern European Directives, Solvency II includes a structured review process to give the legislature an opportunity to (a) check the regime’s working properly; and (b) make adjustments, if it’s not. The Solvency Capital Requirement (SCR) is due for review by 2018, and the rest of Solvency II is due […]

PRA Consultation: Dealing with a market turning event in the general insurance sector

The UK’s Prudential Regulation Authority (PRA) has published a Consultation Paper (CP) “CP32/16 Dealing with a market turning event in the general insurance sector“.  The CP attaches a draft Supervisory Statement (SS), which sets out the PRA’s expectations “in relation to significant general insurance loss events which might affect firms’ solvency and future business plans“. […]