Prudential Regulation Authority Rulebook

1.1

This supervisory statement¹ is of interest to all UK firms that fall within the scope of the Solvency II Directive (‘the Directive’),² and to the Society of Lloyd’s. In particular, it is relevant to firms that are considering applying for, or that have been granted approval to use, either the transitional measure on the risk-free interest rate or the transitional measure on technical provisions.

1.2

It sets out the calculation and application process to be used for these transitional measures, as specified in Transitional Measures 10 and 11 in the Prudential Regulation Authority (PRA) Rulebook.

1.3

This statement should be read in conjunction with those chapters of the Transitional Measures Part, the rules in the rest of the Solvency II Sector of the PRA Rulebook, the Solvency 2 Regulations (2015/575),³ the European Insurance and Occupational Pensions Authority (EIOPA) Level 3 Guidelines and the PRA’s insurance approach document.⁴ 

1.4

This supervisory statement expands on the PRA’s general approach as set out in its insurance approach document. By clearly and consistently explaining its expectations of firms in relation to the particular areas addressed, the PRA seeks to advance its statutory objectives of ensuring the safety and soundness of the firms it regulates, and contributing to securing an appropriate degree of protection for policyholders. 

1.5

Deleted.

1.6

Deleted.

1.7

Deleted.

1.8

Deleted.

1.9

Deleted.