Published on 7 July 2022
PS6/22 – Solvency II: definition of an insurance holding company
Overview
This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to the responses to Consultation Paper (CP) 17/21 ‘Solvency II: definition of an insurance holding company’. It also contains the PRA’s final rules and policy, as follows:
- amendments to the Glossary Part of the PRA Rulebook (Appendix 1); and
- updates to Supervisory Statement (SS) 9/15 ‘Solvency II: group supervision’ (Appendix 2).
This PS is relevant to insurance firms within the scope of the Group Supervision Part of the PRA Rulebook and to the Society of Lloyd’s.
Summary of responses
The PRA received eight responses to CP17/21. Some respondents welcomed the PRA’s proposals, while other respondents made a number of observations and requests for further clarification which are addressed in the following chapter.
Implementation and next steps
The change to the Glossary Part of the Rulebook and the expectations set out in the updated SS9/15 will take effect 12 months after publication of this PS. Consequently, the changes will come into effect on Friday 7 July 2023.
References related to the UK’s membership of the EU in SS9/15 covered by the policy in this PS have been updated as part of this PS to reflect the UK’s withdrawal from the EU. Unless otherwise stated, any remaining references to EU or EU-derived legislation refer to the version of that legislation which forms part of retained EU law.
Appendices
Appendix 1: PRA RULEBOOK: GLOSSARY (SOLVENCY II) AMENDMENT INSTRUMENT 2022
Appendix 2: Update to SS9/15 – Solvency II: Group supervision
Published on 6 September 2021
CP17/21 - Solvency II: Definition of an insurance holding company
Overview
This Consultation Paper (CP) sets out the Prudential Regulation Authority’s (PRA) 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.
The proposals in this CP would result in changes to the Glossary Part of the PRA Rulebook (Appendix 1) and to Chapter 1 of Supervisory Statement (SS) 9/15, ‘Solvency II: Group supervision’ (Appendix 2). The PRA also proposes to make changes throughout SS9/15 as a result of the UK’s withdrawal from the European Union (EU) to amend or remove references to the EU or EU-derived law.
The CP is relevant to insurance firms within the scope of the Group Supervision Part of the PRA Rulebook and to the Society of Lloyd’s.
The purpose of these proposals is to set out the PRA’s approach to distinguishing an insurance holding company from a mixed-activity insurance holding company.
Implementation
The PRA proposes that the implementation date for the changes resulting from this CP would be Monday 28 February 2022.
Responses and next steps
This consultation closes on Monday 6 December 2021. The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP17_21@bankofengland.co.uk.
References related to the UK’s membership of the EU in the SS covered by this CP have been updated as part of these proposals to reflect the UK’s withdrawal from the EU. Unless otherwise stated, any remaining references to EU or EU-derived legislation refer to the version of that legislation which forms part of retained EU law.
Consultation Paper 17/21