General Insurance Article - Solvency II: Secondary Annuity market and MA


In this consultation paper (CP) the Prudential Regulation Authority (PRA) proposes and seeks feedback on a draft supervisory statement setting out its expectations on firms in relation to the application of the matching adjustment (MA) for the purposes of calculating technical provisions, including in the context of applications for MA approval and the ongoing management of MA portfolios under Solvency II (the Directive).

 Summary of proposals
 The draft supervisory statement sets out the PRA’s proposed expectations of firms with regard to the MA in the following areas:
     
  1.   annuity assets purchased in a secondary annuity market;
    2.  
  2.   ongoing MA compliance;
    3.  
  3.   breach of MA requirements; and
    4.  
  4.   changes to MA portfolios.
 The PRA is consulting on this draft statement to allow firms the opportunity to provide feedback and highlight any issues of concern to them.
  
 This consultation is relevant to all UK Solvency II firms and to Lloyd’s.
  
 The proposals in this consultation contain the PRA’s expectations on firms in relation to applications for MA approval and in particular, on issues concerning the eligibility of annuity assets purchased in a secondary market. The proposals also contain the PRA’s expectations on issues to be considered once MA approval has been granted, such as the issues of ongoing MA compliance, dealing with MA breaches and what happens when there are changes to MA portfolios.
  
 Response
 The PRA welcomes views on this consultation by Friday 15 July 2016. Please address any comments or enquiries to CP16_16@bankofengland.co.uk.
  
 To download the consultation paper please click below
  
 

Back to Index


Similar News to this Story

9 in 10 firms interested in insurance cover for Gen AI risks
Businesses worldwide are rapidly embedding Generative AI (Gen AI) into products, services and internal operations. While this brings significant oppor
The Data Use and Access Act what are the key impacts
In June this year, The Data (Use and Access) Act 2025 (DUAA) received Royal Assent. There’s a staged approach to commencement, with most changes likel
Lessons in implementing board level AI governance
Effective leaders have shifted from traditional risk management protocols to more dynamic and responsible governance models for managing AI. AI govern

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.