In May 2014, the PRA issued various data requests to life and general insurance firms. As part of this, the PRA carried out a standardised risk information (SRI) data collection exercise for general insurance firms for a second year in order to support preparations for, and the transition to, Solvency II.
On 12 December 2014, the PRA published feedback on the results of this SRI data collection exercise. The PRA says that, although the quality of data submitted has improved compared to the 2013 submission, incomplete submissions and submissions with errors were still common, especially for outputs collected for the first time this year (for example, market risk outputs). The PRA expects continued improvement in future submissions. Among other things, the PRA says that specific data issues were identified in the catastrophe data received.
The PRA sets out more general observations from submissions that relate to insurance risk (premium risk and reserve risk), catastrophe risk, market risk, and dependencies.
Firms should expect the PRA to request for further clarification in the areas of concern mentioned above as part of on-going supervisory review work. It will provide individual firm feedback where appropriate, however the PRA encourages all firms and managing agents to respond positively to future data requests, use the comments and feedback to improve the quality of data and improve their assessment of regulatory capital requirements and all risk types (for example, insurance and catastrophe risk).