FIN.

PRA release statement on the approach to the application of the Matching Adjustment during Covid-19

The PRA has released a statement (7 July 2020) to insurers on the application of the matching adjustment (MA) during Covid-19. 

The PRA considers that the MA has functioned as intended thus far throughout the Covid-19 crisis. However, the PRA has identified some areas which may need clarification to ensure consistency in firms’ interpretation of the PRA’s policy and this clarification is set out in the staement. The areas include: eligibility, calculation, management of the MA portfolio and reflection in the Solvency Capital Requirement.  

 

FIN. Team