Throughout June, the Prudential Regulatory Authority in the UK (the PRA) has published a number of documents and updates on Solvency II matters.  These include:

  • a mix of supervisory statements & consultations in relation to supervisory approval for the volatility adjustment (i.e. the content and approval process), regulatory reporting and internal model outputs, the ORSA, and the ultimate time horizon for non-life firms and internal model reporting codes and components and life product codes. Responses are invited by 10 July 2015.  
  • feedback and updates in relation to the matching adjustment (in particular, further clarification on management of collateral arrangements, collateral received against stock-lending activity and treatment of reinsurance in the MA calculation; as well as other issues on asset eligibility and MA calculation),  the ORSA based on a high level PRA review of ORSA reports received (identifying, for example, stress testing and the forward-looking nature of the ORSA assessment as areas of significant weakness, feedback for firms on review of their Solvency II balance sheets, and a new webpage on legal entity identifiers for which all firms must apply by 30 June 2016 and updated webpage on the use of the Solvency II taxonomy for preparatory phase submissions.  
  • speeches and articles in relation to continuity and change under Solvency II (including the PRA's expectations of executive and non-executive directors' knowledge of the internal model the growing policy initiative to consider increased investment by insurers in infrastructure) and the regulation of insurers under Solvency II (including issues which are not explicitly covered by Solvency II such as resolution of insurers that fail or that require further monitoring and consideration such as review of internal models).