PRA consults on new Solvency UK framework

The PRA set out major reforms to Solvency II on 29 June 2023, in the first of two planned consultations this year. The PRA’s proposals are intended to create a new Solvency regime for insurers, which will lead to a more competitive and dynamic UK insurance sector, without compromising high standards of policyholder protection. Among other things, the proposals remove onerous reporting requirements, introduce greater flexibility with a principle-based internal model framework, and improve proportionality by increasing the thresholds at which the Solvency UK regime will be triggered. The new regime aims to increase competitiveness by removing some requirements for branches of international insurers operating in the UK.

Download this Hot Topic to see our summary of the PRA’s consultation, and what this means for insurers.