PRA has published a report in response to the Treasury Committee’s inquiry into Solvency 2. The response is split into four parts:
- Part 1: Overview of the UK insurance industry and the rationale for the prudential regulation of insurers.
- Part 2: Solvency 2 and the UK insurance sector, including the development of Solvency 2.
- Part 3: Response to recommendations – PRA issues. This includes a discussion of PRA’s secondary competition objective and PRA’s staff skills and engagement with industry.
- Part 4: Response to recommendations – policy issues. PRA comments on policy issues raised by ABI during the Treasury Committee’s inquiry. PRA responds to specific recommendations made by the Treasury Committee including in respect of reporting, the Matching Adjustment, the Volatility Adjustment, internal models, the Transitional Measure on Technical Provisions, and Brexit.