European Insurance: Solvency II (21 November 2016)

OAC Digest
EU / European Parliament / EIOPA, HM Treasury, PRA / Bank of England, Solvency II

21 November 2016

Selected recent Solvency II news items: 

On 17 November, the ABI called on the Government "to ‘refine not replace’ Solvency II." The Institute and Faculty of Actuaries recently issued their response to the Treasury Committee inquiry into Solvency II. On 11 November, the professional body's full response included comment that "a number of changes could be made to SII... However... SII is a sound basis for an insurance regulatory framework. If it can be simplified and made less onerous for UK insurers this would be a good outcome."

On 16 November, the PRA published a further consultation (CP40/16) on NSTs and withdrew the earlier reporting proposals. OAC published an article providing more information. (The PRA cancelled their related briefing scheduled for 17 November.) 

On 14 November, the PRA proposed a supervisory statement on how it expects Solvency II non-life firms to manage cyber risk (including boards' strategies and investment). The regulator has expressed significant concern in this area in respect of both affirmative and "silent" cyber risk i.e explicit and implicit exposure respectively. They issued a letter on the same date setting out their reasons for their action. 

 

 

David Gray

For more information
David Gray
Consultant Actuary

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