1
Introduction
1.1
This supervisory statement is addressed to all firms and to Lloyd’s. The statement should be read alongside the Insurance General Application Part of the Prudential Regulation Authority Rulebook. It explains the scope of application of the PRA Rulebook Parts on Solvency II to UK Solvency II firms and to Lloyd’s.
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1.2
The PRA is publishing this statement to ensure that firms understand the requirements that they are expected to fulfil in order to comply with the PRA’s rules. It expands on the general approach as set out in its insurance approach document[1]. By clarifying the scope of Solvency II, the PRA seeks to advance its statutory objectives of ensuring the safety and soundness of the firms it regulates, and contributing to securing an appropriate degree of protection for policyholders. The PRA has considered matters to which it is required to have regard, and it considers that this statement is compatible with the Regulatory Principles and relevant provisions of the Legislative and Regulatory Reform Act 2006. This statement is not expected to have any direct or indirect discriminatory impact under existing UK law.
Footnotes
- 1. The Prudential Regulation Authority’s approach to insurance supervision, June 2014; https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/approach/insurance-approach-2014.pdf
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1.3
This statement has been subject to public consultation and reflects the feedback that was received by the PRA.[2]
Footnotes
- 2. PRA Consultation Paper CP16/14, ‘Transposition of Solvency II: Part 3’, August 2014; www.bankofengland.co.uk/pra/Documents/publications/cp/2014/cp1614.pdf
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