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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.
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| Reporting Manager - South East/Hybrid | ||
| South East, Hybrid - Negotiable | ||
| Project-oriented pensions consultant ... | ||
| Any UK Office location / Hybrid working, 2 days p/w in office - Negotiable | ||
| Senior BPA Leader | ||
| London / hybrid 3 dpw office-based - Negotiable | ||
| Risk Settlement Project Support | ||
| UK-wide / hybrid 2 dpw office-based - Negotiable | ||
| Risk Settlement Lead | ||
| UK-wide / hybrid 2 dpw office-based - Negotiable | ||
| Pricing Analyst - Life Actuarial | ||
| South East / hybrid - Negotiable | ||
| Senior Actuarial Trainee | ||
| South East / hybrid 3 days p/w office-based - Negotiable | ||
| Head of Capital | ||
| London - £160,000 Per Annum | ||
| Actuary – Broker | ||
| London - £150,000 Per Annum | ||
| Senior Pricing Analyst - Travel Insur... | ||
| London / hybrid 3 dpw office-based - Negotiable | ||
| BPA Analyst - Non-actuarial | ||
| North West / hybrid 50/50 - Negotiable | ||
| Financial & Insurance Risk Actuary | ||
| Scotland / hybrid 2 dpw office-based - Negotiable | ||
| Pensions (Scheme) Regulation Director... | ||
| London or Birmingham with flexible hybrid working - Negotiable | ||
| Cross-Asset Structurer - International | ||
| Zurich - Negotiable | ||
| BPA Transition Manager | ||
| South East - Negotiable | ||
| Calling all technical pensions specia... | ||
| North West with a range of hybrid working options - Negotiable | ||
| Take the lead on London Market pricing | ||
| London – 3 days per week in the office - Negotiable | ||
| Head of Capital | ||
| London - Negotiable | ||
| Divisional Reinsurance Actuary | ||
| London - £170,000 Per Annum | ||
| Associate - BPA Origination & Execution | ||
| London / hybrid 3 dpw office-based - Negotiable | ||
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