Financial services regulators are intensifying their scrutiny of non-financial misconduct (NFM) within the financial services industry.
Related to this, the insurance marketplace Lloyd’s of London published a...more
1. The Supervision Regime -
Proportionality -
The supervision regime is built on the principle of “proportionality,” in an effort to ensure that supervision remains effective and meets its underlying purposes without...more
11/5/2024
/ Acquisitions ,
Auditors ,
Audits ,
Capital Markets ,
EIOPA ,
EU ,
European Supervisory Authorities (ESAs) ,
Financial Institutions ,
Financial Markets ,
Financial Regulatory Reform ,
Information Sharing ,
Insurance Industry ,
Prudential Regulation Authority (PRA) ,
Regulatory Oversight ,
Regulatory Requirements ,
Reinsurance ,
Reporting Requirements ,
Solvency II ,
UK
The Prudential Regulation Authority’s (PRA’s) director of insurance supervision, Shoib Khan, recently clarified the PRA’s approach to the UK (re)insurance market, including in the following key areas...more
This chapter discusses the valuation of assets and liabilities under Solvency II. Given that strategic asset allocation and investment management are key aspects of an insurer’s business, especially for life insurers, this is...more
The PRA has released an important statement on its approach to funded reinsurance. Our view is that the statement endorses the conceptual principle that funded reinsurance (particularly to offshore counterparties) should best...more
8/2/2024
/ Banking Sector ,
Capital Requirements ,
Collateral Agreements ,
Financial Institutions ,
Financial Services Industry ,
Insurance Industry ,
Life Insurance ,
Prudential Regulation Authority (PRA) ,
Regulatory Requirements ,
Reinsurance ,
Risk Management ,
Solvency II ,
Standard Contractual Clauses ,
UK
There are two main methods of calculating the solvency capital requirement (SCR) under Solvency II, the “standard formula” and “internal model” methods:
(a) The standard formula method, as its name suggests, is the default...more
The Bank of England’s Financial Policy Committee (FPC) and the Prudential Regulation Authority (PRA) recently delivered a series of speeches1 raising their concerns about the evolution of private equity financing and the...more
5/29/2024
/ Alternative Investment Fund Managers Directive (AIFMD) ,
Bank of England ,
Capital Markets ,
Conflicts of Interest ,
Financial Conduct Authority (FCA) ,
Financial Policy Committee ,
Limited Partnerships ,
Private Equity ,
Prudential Regulation Authority (PRA) ,
Risk Management ,
UK
In recent years, demographic changes and macroeconomic factors have led to significant growth in insurance markets. Within insurance markets, a much more active market in trading “back-books” of insurance liabilities has...more
5/22/2024
/ Bermuda ,
Corporate Governance ,
EIOPA ,
Financial Institutions ,
Insurance Industry ,
Investment ,
NAIC ,
ORSA ,
Private Equity ,
Prudential Regulation Authority (PRA) ,
Regulatory Agenda ,
Reinsurance ,
Shareholders
This chapter discusses and analyses the investment rules that apply to Solvency II insurers and reinsurers in the United Kingdom.
In particular, this chapter will outline the “prudent person principle” and discuss the...more
4/30/2024
/ EIOPA ,
Environmental Social & Governance (ESG) ,
EU ,
Financial Institutions ,
Insurance Industry ,
Investment ,
Investors ,
Popular ,
Prudent Investor Rule ,
Prudential Regulation Authority (PRA) ,
Solvency II
Group supervision regulates the impact that members of a Solvency II group may have on a UK Solvency II insurer. The rules governing Solvency II groups are contained in the PRA Rulebook (Group Supervision), the Solvency 2...more