Will Solvency II apply after Brexit?
The UK transition period according to the Withdrawal Agreement ends on 31 December 2020. Following this date, all Union primary and secondary law will no longer apply to the United Kingdom, including the Solvency II Directive as well as the Directive on Insurance Distribution (IDD).
Who enforces Solvency II?
Level 4 – Post-implementation enforcement After the deadline for implementation, the European Commission is responsible for ensuring that member states are complying with the legislation. If they are not doing so, the Commission will take enforcement action.
Why is Solvency II important?
The key objectives of Solvency II are as follows: Improved consumer protection: It will ensure a uniform and enhanced level of policyholder protection across the EU. A more robust system will give policyholders greater confidence in the products of insurers.
What is a good solvency capital ratio?
The solvency ratio is a debt evaluation metric that can be applied to any type of company to assess how well it can cover both its short-term and long-term outstanding financial obligations. Solvency ratios below 20% indicate an increased likelihood of default.
How much capital could be released from Solvency II?
HMT’s consultation considers its proposed reforms to Solvency II could result in a release of possibly as much as 10% or even 15% of the capital held by life insurers.
When do the new solvency regulations come into effect?
December 2015 On 11 December 2015, we made firms aware that the European Commission adopted three Solvency II Implementing Technical Standards on 2 December 2015 that will all apply from 1 January 2016. These are: i) the Solvency II supervisory reporting; ii) public disclosure; and iii) transparency and accountability.
How long does the Solvency II consultation take?
The consultation will run for 12 weeks closing on 21 July. The government will then consider and publish a response to the consultation in due course. The PRA will also publish a consultation of their own at a later date. Solvency II sets out the prudential regulatory requirements for insurance firms within the EU.
When did we publish Solvency II supervisory disclosures?
21 August 2018: We published ‘ Solvency II: Supervisory disclosures, PRA’s supervisory approach and insurance regulations applicable in the UK ’ in line with our obligations under Article 31 (2) of the Solvency II Directive for year-end 2017.