The Prudential Regulation Authority (PRA) has proposed multiple changes to insurance reporting requirements under the Solvency II directive.
The proposed changes, released in a consultation paper on 11 January, aim to diminish the burden for Solvency II firms and mutuals while concurrently sustaining the PRA’s ability to meet its statutory objectives and supervise firms.
Changes were suggested that reduce the content required in a number of the PRA’s national specific templates, with the aim to decrease the amount of firms required to submit the templates and therefore lessen the burden on smaller firms.
The paper also suggests a proposed adjustment to the PRA’s approach to granting quarterly reporting waivers, as well as an alteration which exempts mutuals from submitting annual controller reports if they do not have a controller.
According to PRA, its paper is relevant to all UK Solvency II firms, Society of Lloyd’s and its managing agents and mutuals.
The proposals are part of PRA’s adjustments in reflection to the experiences of the UK’s implementation of Solvency II and include areas highlighted by the Association of British Insurers (ABI) and discussed with the Treasury Committee.
Steven Findlay, head of prudential regulation at the ABI, commented: “We estimate Solvency II has resulted in the reporting burden on UK insurers increasing by between four and eight times.”
“Today’s move by the PRA proposing some reductions to this is another step in the right direction and will be particularly helpful to smaller firms in easing this disproportionate burden they are facing.”
The consultation closes on 13 April 2018.
