03 May 2016

Bank of England: Reporting requirements for non-Solvency II insurance firms

This consultation paper sets out proposals for new reporting rules in the Prudential Regulation Authority Rulebook that would apply to insurance firms that are outside the scope of Solvency II from 1 January 2016. Collectively, these firms are referred to as non-directive firms (NDFs).

This consultation proposes to update the current rules which apply to NDFs: transposing PRA Handbook material relevant to NDFs into the Rulebook format; amending the reporting rules following the changes to the prudential regime for non-Solvency II insurance firms published in policy statement 26/15 ’The prudential regime, and implementation of the Senior Insurance Managers Regime, for non-Solvency II firms’; and, where possible, proposes to simplify some of the requirements.

In CP27/15 ‘The prudential regime for non-Solvency II insurance firms and consequential amendments’, the PRA consulted on transposing PRA Handbook material relevant to NDFs into the Rulebook format. These proposals included the deletion of the Handbook modules IPRU(INS) and IPRU(FSOC). CP27/15 noted that firms would be required to comply with reporting rules contained in Chapter 9 of IPRU(INS) or Chapter 5 of IPRU(FSOC) until 31 December 2015, with the PRA proposing new rules in 2016. This CP sets out those proposals.

In line with the PRA’s general approach to transposing material from the PRA Handbook to the Rulebook, the PRA proposes to consolidate the Handbook material into new or existing parts. In this CP, the PRA proposes to create two new Rulebook Parts within the Non-Solvency II Firms sector:

• Insurance Company – Reporting; and
• Friendly Society - Reporting.

This consultation closes on Monday 13 June 2016. The PRA plans to publish a policy statement with feedback and final policy in summer 2016.

Full news

Consultation paper

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