Insurance

Prudential Regulation Authority

Solvency II - PRA publishes consultation paper on the definition of an insurance holding company - 6 September 2021

The PRA has published a consultation paper on its proposed approach to interpreting and applying the definition of an insurance holding company for the purposes of the Group Supervision Part of the PRA Rulebook (CP 17/21). In so doing, the PRA seeks to set out its approach to distinguishing an insurance holding company from a mixed-activity insurance holding company.

The consultation paper includes the following proposals:

• Changes to the definition of ‘insurance holding company’: the PRA proposes to interpret the term ‘mainly’ (contained in the definition of ‘insurance holding company’ in its Glossary Part) 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
• Proposed changes to Chapter 1 of Supervisory Statement SS9/15 on Solvency II group supervision: the PRA proposes to clarify its expectations on the information required from firms in order to distinguish an insurance holding company from a mixed-activity insurance holding company. The PRA proposes to publish this clarification as further guidance in SS9/15. The PRA also proposes to amend or remove references to the EU or EU-derived law throughout SS9/15 to reflect the UK’s withdrawal from the EU.

Comments can be made on the proposals until 6 December 2021. The PRA proposes that the implementation date for the changes would be 28 February 2022.

Consultation paper: Solvency II: Definition of an insurance holding company

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