The Prudential Authority (PA) published Communication 3 of 2018 which sets out:
- the process that previously registered insurers should follow if they are part of a group of companies; and
- the process that the PA shall follow for the designation of insurance groups and controlling companies.
The Communication confirms that previously registered insurers must, by no later than close of business on 1 September 2018, notify the PA that it is part of a group of companies and provide the information required in terms of Item 12 of Schedule 3 of the Insurance Act.
The Communication states that the form of notification is at the discretion of the insurer. The information on the structure of the group of companies that insurer provides must include: (i) a full diagrammatic representation of the entire group of companies, (ii) all intra-group transactions and (ii) all outsourcing arrangements within the group.
The PA will implement the following 5-step process for the designation of insurance groups and controlling companies on receipt of the required information:
|Step 1||Scope the insurance group and identify the holding company that should be designated as the controlling company of the insurance group|
|Step 2||Inform the insurer and the identified holding company of the intended scope of the insurance group and the PA's intention to designate that as the insurance group and the holding company as the controlling company|
|Step 3||The insurer and identified holding company may make representations|
|Step 4||Consider any representation made in respect of the designation of the insurance group and controlling company|
|Step 5||Inform the insurer and designated holding company of the PA's decision|
A copy of the Communication can be accessed here.