PRA

The reduced fine reflected the PRA view that the breaches weren’t deliberate.

The strategy is a 10-year plan to drive growth in UK financial services.

The government is consulting on reforms to the existing regulations.

The PRA, FCA and Society of Lloyd’s have agreed to the changes.

The proposals consist of supervisory expectations rather than rules.

By March, firms must be able to show they can remain within impact tolerances.

The workshops will provide feedback on the logistics of producing and running a set of stylised adverse events.

Two-thirds of insurance firms have been challenged about their resilience plans by the regulator.

MGAs are looking hard at capacity arrangements for fear of regulatory action.

The IUA argued the change would change the mutualisation of risk in the market.

The changes lift the threshold for companies reporting in the Solvency UK regime to £25mn.

The consultation will close on 26 April, with the PRA expecting to implement changes in Q4 2025.

The test will involve simulating a sequential set of adverse events over a short period of time, the watchdog said.

Insurance Insider has compiled a digest of a complex web of regulatory reforms that will take shape during the next 18 months.

The regulator plans to start disclosing results for individual insurers from stress tests, as it draws on new legal powers to enhance testing of financial resilience.

The Prudential Regulation Authority has set out elements that will underpin the implementation of its new objective to harness the financial sector's competitiveness.

The PRA's Sam Woods said that, after the Solvency II reforms take effect, the government will need to monitor whether insurers invest £100bn in green infrastructure investments.

The Treasury has set out four options to take effect when insurers, outside the Lloyd's market, are at risk of collapse.

The new reforms will mean the PRA cutting red tape for insurers to foster competition while maintaining Solvency II standards.

The UK government is aiming to introduce its changes to the Solvency II regime as soon as practicable.

Sean McGovern, chair of the London Market Group, outlined why it is critical for the trade body’s outreach programme to build the market’s talent pipeline and attract data science expertise.

The UK Prudential Regulation Authority plans to publish an annual report showing how it has implemented a statutory duty to enable economic growth and the financial sector’s competitiveness.

At Trading Risk’s London ILS 2023 conference, the PRA’s head of division for London markets, Andrew Dyer, explained how the PRA is executing its plans to bolster the UK ILS market.

The PRA will undertake work to understand liquidity risk across insurers, after liquidity crises that have engulfed Silicon Valley Bank, Signature Bank and Credit Suisse.

The regulator has set out priorities for monitoring climate risks for the financial system and how it will address climate-related gaps in the regulatory regime.

The regulatory reform will require the PRA to change the shape of what the directorate does, according to BoE’s Sam Woods.

The regulator will propose quantitative metrics that Parliament could use to hold the regulator accountable for achieving a new growth objective.

The PRA’s Charlotte Gerken has set out the regulator’s initial thinking on tracking inward investment to the London market, among other measures, to implement its new economic growth duty.

The regulator made the comments in correspondence with MPs amid ongoing discussion on Solvency II reform.

The UK Treasury has set out proposals for a new resolution regime that would be triggered when insurers are on the verge of insolvency.

The network’s report into how regulators process approvals is the latest study to unearth operational failures at the Financial Conduct Authority.

The regulator has implemented several changes, which it says will increase UK competitiveness and bolster participation in the UK’s ILS market.

In a review of financial services firms’ D&I policies that highlighted shortcomings, the regulator said policies need to be holistic, and not generic.

The government will consult in Q1 2023 on pulling ESG ratings providers into the FCA’s perimeter.

Chancellor Jeremy Hunt has written to both financial regulators instructing them to consider government policy to bolster the UK’s competitiveness as a global financial centre, as part of major reforms announced today.

The Treasury is yet to clarify its plans to introduce ‘call in’ powers against regulators, or detail how regulators will be held accountable over a new growth duty.

MPs have criticised the Treasury’s move to delay the introduction of a call-in power against regulators, in a bill passing through Parliament.

In a speech last night, the PRA CEO issued the regulator’s latest warning to MPs about regulatory reforms.

After the new Cabinet was formed and ministerial appointments announced, Andrew Griffith has retained a portfolio that includes financial services regulation.

Senior officials from the UK Treasury and Prudential Regulation Authority agreed measures with US Treasury officials to ensure transatlantic access to reinsurance is opened up.

The regulator has seen various levels of embedding climate risk management processes among insurers and banks, and called for more progress by “all firms”.

Firms must use up-to-date information to avoid a “material deterioration of solvency coverage”, according to the letter published by the PRA.

The opportunity to set in statute meaningful powers and metrics to hold financial regulators accountable will reach a tipping point in the coming weeks, as the Financial Services and Markets Bill progresses through the next parliamentary stages.

The watchdog is seeking views on topics such as where there are barriers to the safe and widespread adoption of AI.

The PRA’s executive director of prudential policy Vicky Saporta has outlined how a new competitiveness objective will be put into practice.

Financial Secretary Andrew Griffith will have oversight of reforms to FCA and PRA operations, but how far he’ll take that mandate is an open question.

The government has also resisted any new accountability measures that would impact the regulators’ independence, in a response to an MPs’ report.

In a letter to the Treasury Committee, Bank of England Governor Andrew Bailey said the bank does support proposals to enhance regulatory accountability.

The authorities have launched a discussion paper on how “critical” third-party suppliers can be regulated, including with skilled-person reviews.

The Bank of England has warned that data gaps and inconsistencies in ESG ratings are impacting insurers’ responses to climate risk.

With Anna Sweeney due to leave, the PRA is now looking to fill one of its most influential roles for insurance supervision.

As the Treasury falls under pressure to ramp up oversight of the FCA and PRA, Insurance Insider explores what this should mean in practice.

Whitehall plans to give regulators a suite of new powers to oversee critical technology providers to insurers and banks.

The consultation unveils the details on a new mobilisation regime for insurer start-ups, along with plans to cut reporting burdens.

The regulator plans to review applications from wholesale insurance firms initially on the basis of preliminary information.

The PRA said that rising costs stemmed largely from the need to establish a robust post-Brexit regulatory regime.

The government acknowledged it would be unfair for shareholders to continue to benefit financially when insurers fall into insolvency.

The Prudential Regulation Authority’s CEO appeared at the House of Lords inquiry into London market regulation this morning.

The regulators set out their views to MPs on a proposed statutory objective to focus on the UK financial services sector’s competitiveness.

The Bank of England governor indicated how Solvency II reforms could create opportunities for carriers to support investment.

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.

The UK regulator is planning to review the impact of M&A on financial resilience.

The CEO seeks to check the life sector’s hopes of a significant lowering of capital requirements.