The prudential regulation of insurers under Solvency II



Download 6.97 Kb.
Date conversion15.05.2016
Size6.97 Kb.
Dear Colleague,

The Bank of England today published a Bulletin article from the forthcoming Q2 edition that we thought might be of interest:



The prudential regulation of insurers under Solvency II (see also short video)

  • The introduction of Solvency II will see the move to a forward-looking capital regime that will provide greater incentives for European insurers to improve their management of the risks they face – marrying together risk and capital.  For the UK, Solvency II should be seen as more of an ‘evolution’ than a ‘revolution’ given that UK insurance firms already operate to a risk-based capital regime under the remit of ICAS. 

  • This article sets out in one place, and in simple terms, some key features of Solvency II, including:
    - a market-consistent valuation of assets and liabilities (including the role of the ‘matching adjustment’);
    - the move to a going concern regime (including the concept of the ‘risk margin’);
    - the enhanced quality of capital in the new regime; and
    - improved approaches to governance, risk management, group supervision and firm disclosures.

The Bank also published an article that explains banking interconnectedness. Past editions of the Bulletin can be accessed here.  The rest of the Q2 edition will be published on Thursday 18 June.  If you have any questions or would like to give us feedback on this piece, you can contact the editor at publications@bankofengland.co.uk.

PRA Communications

Prudential Regulation Authority | MG1-SE | 20 Moorgate | London EC2R 6DA

For more on the PRA visit: PRA webpages | Publications | Twitter | LinkedIn


This e-mail (including any attachments) is intended only for the addressee(s) named above. Its contents may be confidential. If you receive this e-mail in error, please immediately contact the sender and delete this e-mail. Unauthorised use, disclosure, storage or copying of this email and any attachments is not permitted and may be unlawful.

The Bank of England is located at Threadneedle Street, London EC2R 8AH. The Prudential Regulation Authority is located at 20 Moorgate, London EC2R 6DA (Registered in England and Wales No: 07854923. Registered office: 8 Lothbury, London EC2R 7HH). Please visit www.bankofengland.co.uk


The database is protected by copyright ©essaydocs.org 2016
send message

    Main page