12 Jan 2022

Feedback published by the PRA to the responses to CP11/21

  • Insurance regulatory reporting
  • Solvency II CMR Reporting
  • Reporting

The Prudential Regulation Authority (PRA) published a Policy Statement (PS29/21) in December 2021 providing feedback to responses to the earlier Consultation Paper (CP) 11/21 Review of Solvency II Reporting (Phase 1).

There were 14 repsonses to the CP in total, with most respondents welcoming the paper's proposals, which ultimately lighten reporting requirements for insurers in its scope. This includes removing some reporting requirements completely, simplifying requirements and reducing the frequency of reporting so the overall requirements are less demanding.

In the consultation paper (CP11/21) the PRA propose to:

  • change the frequency of reporting of the minimum capital requirements (MCR) collected by S.28 templates, from quarterly to twice-yearly
  • further exempt reinsurance undertakings from reporting template S.16.01 on annuities from non-life insurance obligations
  • remove the requirement to report a number of Solvency II Quantitative Reporting Templates (QRTs)

The PS is relevant to all UK Solvency II firms, the Society of Lloyd’s and its managing agents, insurance and reinsurance undertakings with a UK branch, and firms within the PRA’s Temporary Permissions Regime for (re)insurers. The changes will significantly reduce the frequency of reporting from the baseline Solvency II package for more than half of affected insurers.

The PRA also introduced some rule changes for Pillar 3 reporting, which came into effect on 31st December 2021 and will impact affected firms Q4 2021 and A1 2021 submissions.

Key changes:

Financial Stability Reporting - Reporting requirements for financial stability templates have been removed. The guidelines no longer apply in the UK.

Third Country Branches Reporting - QRT reporting requirements for third country branches have been split into three groups. The reporting requirements for a third country branch vary depending on the group they are in.

You can read the full policy statement PS29/21 to find out how you might be affected here.