1. The Supervision Regime -
Proportionality -
The supervision regime is built on the principle of “proportionality,” in an effort to ensure that supervision remains effective and meets its underlying purposes without...more
11/5/2024
/ Acquisitions ,
Auditors ,
Audits ,
Capital Markets ,
EIOPA ,
EU ,
European Supervisory Authorities (ESAs) ,
Financial Institutions ,
Financial Markets ,
Financial Regulatory Reform ,
Information Sharing ,
Insurance Industry ,
Prudential Regulation Authority (PRA) ,
Regulatory Oversight ,
Regulatory Requirements ,
Reinsurance ,
Reporting Requirements ,
Solvency II ,
UK
This chapter discusses the valuation of assets and liabilities under Solvency II. Given that strategic asset allocation and investment management are key aspects of an insurer’s business, especially for life insurers, this is...more
The PRA has released an important statement on its approach to funded reinsurance. Our view is that the statement endorses the conceptual principle that funded reinsurance (particularly to offshore counterparties) should best...more
8/2/2024
/ Banking Sector ,
Capital Requirements ,
Collateral Agreements ,
Financial Institutions ,
Financial Services Industry ,
Insurance Industry ,
Life Insurance ,
Prudential Regulation Authority (PRA) ,
Regulatory Requirements ,
Reinsurance ,
Risk Management ,
Solvency II ,
Standard Contractual Clauses ,
UK
There are two main methods of calculating the solvency capital requirement (SCR) under Solvency II, the “standard formula” and “internal model” methods:
(a) The standard formula method, as its name suggests, is the default...more
“The value of technical provisions should correspond to the amount which another insurance or reinsurance undertaking (the reference undertaking) would be expected to require to take over and fulfil the underlying insurance...more
This chapter discusses and analyses the investment rules that apply to Solvency II insurers and reinsurers in the United Kingdom.
In particular, this chapter will outline the “prudent person principle” and discuss the...more
4/30/2024
/ EIOPA ,
Environmental Social & Governance (ESG) ,
EU ,
Financial Institutions ,
Insurance Industry ,
Investment ,
Investors ,
Popular ,
Prudent Investor Rule ,
Prudential Regulation Authority (PRA) ,
Solvency II
This episode of “The Standard Formula” podcast features a conversation with the Financial Institutions Group’s Ben Lyon and Verena Mengis, who walk listeners though recent proposals for reform relating to Solvency U.K. and...more
Group supervision regulates the impact that members of a Solvency II group may have on a UK Solvency II insurer. The rules governing Solvency II groups are contained in the PRA Rulebook (Group Supervision), the Solvency 2...more