PRA is consulting on its approach to interpreting and applying the definition of “insurance holding company“. It wants to distinguish an insurance holding company from a mixed-activity insurance holding company for the purposes of the Group Supervision Part of its Rulebook.
The definition of insurance holding company PRA will amend the Glossary to clarify what the word “mainly” means in the context of whether the subsidiary undertakings the holding company acquires are “exclusively or mainly” insurance or reinsurance undertakings. PRA proposes to define “mainly” by reference to the proportion of a group’s assets, revenues or capital requirements that are derived from insurance or reinsurance subsidiaries or ancillary insurance services undertakings, and to clarify its expectations on the information it needs from firms to distinguish an insurance holding company from a mixed-activity insurance holding company.
PRA feels this will make the regulatory process more efficient and consistent.
It is also taking the opportunity to update references in SS9/15 to the UK’s EU membership.
Consultation closes on 6 December and PRA wants to implement the changes on 28 February 2022.