Prudential Regulation Authority Rulebook

12.1

This Chapter applies to the Society and managing agents.

12.2

For the purpose of;

1. (1) 3.1(2)(b), 3.8(2)(c) and 6.1(1)(i), as applied to managing agents, the reference to “SCR” is to be interpreted as a reference to the notional syndicate SCR calculated by managing agents as required by Solvency Capital Requirement - General Provisions 8.2.
2. (2) 3.7 and 3.8(5), as applied to managing agents, the reference to “internal model” is to be interpreted as a reference to any internal model used by a managing agents to calculate the notional syndicate SCR as required by Solvency Capital Requirement - General Provisions 8.2; and
3. (3) 3.10, as applied to managing agents, the reference to “risk profile” is to be interpreted as a reference to the risk profile of any syndicate managed by the managing agents.

12.3

For the purpose of 3.8 to 3.11, as applied to managing agents, managing agents must conduct an ORSA for each syndicate which they manage.

12.4

Where a provision of this Part requires that a function be established, the Society and managing agents must each separately establish that function.

12.5

[deleted]

12.6

The PRA and the Society must be informed promptly by the managing agent of any concerns about the adequacy of the technical provisions, and any material deficiencies, identified in the annual written report to be submitted by the actuarial function to the governing body of that managing agent.

12.7

For the purpose of 9.1, the Society and managing agents must take all reasonable steps to ensure that:

1. (1) a corporate member does not carry on any commercial business other than insurance business and activities arising directly from that business; and
2. (2) individual members do not, in their capacity as underwriting members, carry on any commercial business other than insurance business and activities arising directly from that business.