PRA Director of Life Insurance, Andrew Bulley, has spoken on the sector’s developments in the last year, what PRA supervision under Solvency 2 will look like and looking forward to the challenge of longevity risk transfer. The core of PRA’s forward-looking, judgement-based, proportionate approach to supervision will remain the same but it can now be supplemented by increased quality and scope of data received from firms. He also pointed out PRA’s future scepticism for firms seeking to change the parameters of approved models for the sole purpose of reducing their capital requirements. PRA has not been seeking to use the internal model approval process as a means to increase capital across the insurance sector. (Source: PRA discusses the Solvency 2 landscape)