The PRA’s proposed approach to the publication of technical information at the end of the transition period has now been confirmed and will take effect at 11pm on 31st December 2020. Whilst affecting all UK Solvency II firms, including the Society of Lloyd’s and its managing agents, the confirmation will be of most pressing concern to those whose financial year end is 31st December – for reporting purposes, at 11.59pm.
The new provisions will in a large part mirror the methodologies and judgements that the European Insurance and Occupational Pensions Authority (EIOPA) used, but there will be some issues to address for firms with business in the more obscure currencies. The PRA has made it clear that it intends to publish technical information for currencies “by selecting PRA relevant currencies to ensure that at least 99% of group technical provisions are covered.”
Where firms have technical provisions in a currency that is not covered by the PRA, “it is a firm’s responsibility to propose technical information that complies with Solvency II requirements, and to justify this approach to its supervisor.”
In summary, the two key issues to be aware of are:
- Firms who have technical provisions stated in an obscure currency that may not be covered by the new PRA technical information;
- Firms with an end of year on 31st December who are the first to be affected by this change.
If you have any questions about the implementation of new Solvency II provisions on technical information after the transition period ends at 11pm on 31st December 2020, please speak with one of the team in complete confidence.
Kenneth Underhill
Director
Implement Compliance Solutions & Resources
Computers4Schools
ICSR is supporting the Insurance Community initiative 'Computers4Schools'. Find out more about the way you and your organisation can support this by watching this video narrated by Huw Evans, Director General of the ABI.
