Insurance - Q4 2022

• The FCA published their wholesale brokers portfolio letter which focused on financial resilience, remuneration, governance & culture and control functions;

• FCA also published guidance for supporting insurance customers in financial difficulty (CP23/1). Here, they have consulted on setting clearer expectations for insurers on how they might deal with such policyholders.

• The PRA published their 2023 priorities letter. The have indicated that they will focus on financial resilience, reinsurance risk, implementation of financial reforms, ease of insurers’ exit from the market, risk management, and operational resilience.

• The PRA published a consultation paper on Reporting phase 2 of the Solvency II review. The proposals aim to significantly streamline several SII reporting and disclosure requirements. This paper outlines the phasing in and out of specific reporting templates, and changes to the scope of Solvency II and NST reporting including new topics that insurers will need to report on going forward.

•  And finally, the Government issued its response to the Solvency II consultation in November 2022. This paper focuses on a number of subjects including risk margin, matching adjustment, increasing investment flexibility, and reducing reporting-related administrative burden.

For a more comprehensive review on this topic, please click on the pdf below: