Review of Solvency II: Reporting phase 3: liquidity reporting

The PRA intends to develop new liquidity reporting requirements with input from industry stakeholders that will provide the PRA with information on liquidity risk exposures on a consistent and timely basis.

Background

Market-wide stresses in March 2020 and September 2022 led to liquidity strains for some insurers as well as highlighting gaps in insurers’ liquidity risk frameworks. During these events, the PRA sought to receive timely and accurate data on firms’ positions and exposures and is looking to collect this information on a more consistent and systematic basis in advance of potential future market stresses. 

During 2024, the PRA will work with relevant stakeholders to develop liquidity reporting requirements. Through this work, the PRA aims to have timely, consistent, and accurate information on insurers' liquidity positions, to allow the PRA to form a view on firms' resilience, both in peacetime and in stress.

What do I need to know?

The PRA is launching this work through a Liquidity Roundtable with insurers and relevant stakeholders on Tuesday 19 March 2024, between 11am and 12pm. Please register to attend the hybrid event.

The roundtable will cover:

  • the PRA’s views on sources of liquidity risk within insurers
  • the existing liquidity risk management framework, as set out in SS5/19
  • the PRA’s planned engagement during 2024 to develop liquidity reporting requirements

The PRA’s initial focus will be on those firms with the largest derivatives exposures and potential for surrenders. However, all industry participants are free to nominate individuals to participate at the event. 

This will be a hybrid event and we would encourage you to attend in person. Participation at the event is on a voluntary basis and the event joining details will be shared on registration. The roundtable will be conducted under ‘Chatham House Rule’ and so opinions expressed at the meeting will not be attributed to individuals.

What will happen after the roundtable?

Following the Liquidity Roundtable for insurers, the PRA intends to have regular subject expert group meetings until September 2024 to explore the topic further, with representatives from firms with an interest in the new reporting requirements. 

If you would like to find out more, please email: Solvency2Review@bankofengland.co.uk

About the event

Date and time: Tuesday, 19 March 2024, 11am to 12pm
Location: Hybrid (on Microsoft Teams) / Threadneedle Street (TS conference centre)

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This page was last updated 05 March 2024