Articles - PRA's consultaion paper on Solvency II:Transitional Measures


This consultation paper (CP) seeks views on draft rules to implement Solvency II transitional measures for risk-free rates and technical provisions. The consultation also includes two draft supervisory statements: the first on the PRA’s expectations regarding these transitional measures; and the second on the internal model treatment of participations. It follows CP16/14 transposition of Solvency II - Part 3 where the intention to publish this CP was anticipated.

 The CP is of interest to all UK insurance firms within the scope of Solvency II and to the Society of Lloyd’s. It should be read alongside the relevant European legislation, previous consultations on Solvency II, and relevant parts of the PRA Rulebook.
 Summary of proposals covered by the CP
  
 The proposed rules in this CP are designed to ensure a smooth transition towards the full requirements of the new regime. The Directive specifies a transitional on risk-free rates, for which firms must apply to the PRA for approval to use, and which is designed to enable firms to transition from their current discount rate requirements to the corresponding Solvency II requirements. The Directive also specifies a transitional on technical provisions, for which firms must apply to the PRA for approval to use, and which is calculated as an adjustment to the relevant risk-free interest rate term structure.
  
 The draft supervisory statements in this consultation set out the PRA’s expectations regarding the calculation and application process to be used for these transitional measures. They also set out the PRA’s expectations of firms in relation to how participations in (re)insurance firms are reflected in the Solvency Capital Requirement at the solo level.
  
 The PRA is required to transpose the Directive by Tuesday 31 March 2015 and the Solvency II regime will apply to all affected firms from 1 January 2016.
  
 Responses
 This consultation closes on Friday 20 February 2015.
 Please address any comments or enquiries here
  
 To download the paper please click on the document below.
  
  
 

Back to Index


Similar News to this Story

New strategic options for DB pension schemes
The next phase of Mansion House reforms is upon us! On 23rd February the government published a consultation on proposals that will open up two new st
Five Hundred Twenty Five Thousand Extra In Interest
The aim of raising interest rates is to slow down the economy, by reducing demand and making financing more expensive. This makes sense as a mechanism
Next steps with the General Code
Whether you have already completed initial assessments or are starting the work now, this webinar from Barnett Waddingham will take you through the ne

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.