News release
The proposals for a Matching Adjustment Investment Accelerator (MAIA) look to reduce barriers to rapid investment by insurance firms. They would allow firms to benefit from immediate recognition of the Matching Adjustment benefit ahead of receipt of full permission.
This consultation paper sets out the PRA’s proposed rules to reform the Matching Adjustment (MA) application process by introducing a new MAIA permission.
Under the proposals, firms with an MAIA permission will have 24 months to submit a formal MA application on eligible assets with new features, reducing the risk that firms miss out on time-sensitive investment opportunities. It will help support the PRA’s secondary objective to facilitate greater international competitiveness and growth of the UK economy.
Sam Woods, Deputy Governor for Prudential Regulation and CEO of the PRA, said: ‘This innovation will enable insurers to make more rapid investment decisions and support growth in the UK economy, while protecting policyholders.’
The MA permits firms to discount their liability cash flows at a higher rate than the basic risk-free rate, resulting in a lower liability value. The consultation paper is relevant to insurers that currently have an MA permission, or those that may seek an MA permission in the future.
Notes to editors
- Matching Adjustment
- PS10/24 – Review of Solvency II: Reform of the Matching Adjustment
- This consultation closes on Wednesday 4 June 2025. The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP7_25@bankofengland.co.uk.