PRA updates Solvency II supervisory expectations

PRA has published updated Supervisory Statements on:

  • regulatory reporting, internal model outputs, and on ORSA and the ultimate time horizon for non-life firms. The new policies take effect for all financial year-ends on or after 31 December 2018;
  • internal models – modelling of the volatility adjustment and am amended SS on internal models – assessment, model change and the role of NEDs. The expectations set out in the papers take immediate effect from 17 October;
  • external audit, specifically PRA’s proposal to remove the audit requirement for small insurers.  These changes take effect from 15 November; and
  • supervisory approval for the volatility adjustment. These changes took immediate effect from 17 October.