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Posted in European Union, Regulatory and legislative updates, UK

The PRA response to the Treasury Committee’s Inquiry into Solvency II

In October 2017, the Treasury Committee of the House of Commons (the Committee) published its report on the Solvency II Directive and the upcoming issues generated by Brexit for the UK insurance industry. As part of its report, the Committee made a series of recommendations to the PRA, which we highlighted in our previous note in November of last year.  The Committee asked the PRA to produce a report containing commentary on any substantive progress made on the recommendations by 31 March 2018.

The PRA has now published its report, parts 3 and 4 of which detail its response on the issues raised by the Committee’s report.  In addition, Sam Woods, Deputy Governor of the PRA, has recently delivered a speech addressing certain elements of the PRA’s response.  This note explains the key points raised by the PRA and the likely consequences for the industry.  The PRA also took the opportunity to explain progress made on certain recommendations made by the Association of British Insurers, which we have not addressed in this note.

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