PRA identifies shortcomings with funded reinsurance arrangements
The PRA issued a letter to the Chief Risk Officers of life insurers on 15 June 2023, sharing feedback on its review into funded reinsurance (FundedRe) arrangements. Given insurers have increased their activity in the bulk purchase annuity (BPA) market, and are relying on FundedRe arrangements to support their BPA business, the PRA carried out its review to enhance its understanding of the counterparty risks arising from FundedRe. Following its review, the PRA is considering the need to develop and consult on further policy beyond existing expectations.
Download this At a glance to see our summary of the PRA’s review, and what it means for life insurers.
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