PRA

Data obtained from PRA and FCA shows fewer Skilled Persons Reviews in recent years – but the tool remains a valuable one for regulators.

The regulator said it does not seek to either “incentivise or disincentivise” legacy transfers.

In a Dear CEO letter from Charlotte Gerken and Anna Sweeney, the regulator has set out expectations on climate change, systemic risks, and a stress test for later this year.

Trade body Insurance Europe has warned the Prudential Regulation Authority (PRA) that the temporary regime enabling EU reinsurers to trade in the UK will close before they know which of the Solvency II reforms will be taken forward.

Plus the winners of the Insider Honours and all the top news from the week.

Amid three regulatory consultations for the legacy market and the threat of s166 reviews for certain Part VII transfers, the legacy market is reaching a turning point.

PRA director Gareth Truran has outlined the dangers of cutting capital requirements for certain assets for insurers, in a speech on specific Solvency II reforms.

The regulator said firms should undertake a “holistic assessment” of the associated financial risks involved with trade credit finance.

The PRA has proposed that where non-life legacy transfer deals involve a carrier in run-off, the acquirer may have to go through a Section 166 review under certain circumstances.

The regulator has set out timelines and the high-level scope for its 2022 stress-testing exercise with insurers.

The regulator has launched its Quantitative Impact Study, which will gather data for potential changes to balance-sheet requirements under Solvency II.

The PRA’s executive director for insurance has outlined the scope of a market study and consultation that will ultimately reform and simplify the Solvency II regime.