First published on 12 August 2016
This supervisory statement (SS) is relevant to all UK insurance and reinsurance firms and groups within the scope of Solvency (‘Solvency II firms’). The Prudential Regulation Authority (PRA) expects firms to read this statement alongside all relevant European legislation.
This SS provides guidance for significant (PRA Category 1 and 2) Solvency II firms in complying with the requirements in Article 275 of the Commission Delegated Regulation (EU) 2015/35 (‘the Solvency II Regulation’). It may also be used as a guide for smaller firms when reviewing their remuneration policies and practices against the Solvency II Regulation requirements. This statement does not set absolute requirements as these are contained in the directly applicable Solvency II Regulation which came into force on 1 January 2016. Category 1 and 2 firms unable to meet or exceed the PRA’s expectations (as set out in this SS) should inform their PRA supervisory contact.
The policy contained in this supervisory statement has been designed in the context of the current UK and EU regulatory framework. The PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework, including those arising once any new arrangements with the European Union take effect.