The UK Bank of England’s Prudential Regulatory Authority (PRA) arm has begun a new consultation process which could result in changes to ease some of the regulatory reporting burden re/insurers have faced under Solvency II.
The proposals, contained in a consultation paper titled “Changes in insurance reporting requirements“, are the result of work to the UK’s insurance prudential framework in light of the implementation of Solvency II, the PRA said.
They cover a range of insurance reporting requirements, under the prudential framework, with a focus on areas recommended for reform by the Association of British Insurers (ABI) and that have been discussed with the UK government’s Treasury Committee.
The PRA said that the consultation proposals are relevant to all UK firms that report under Solvency II, including Lloyd’s of London operators, managing agents and mutuals.
Much of the reporting to the PRA that re/insurers have to undertake under Solvency II forms part of the European Commission’s harmonised package, the PRA said, of the remainder the PRA said it has tried to “design the most extensive package of reforms possible without compromising its ability to supervise firms with the appropriate evidence base.”
The PRA hopes that these proposed insurance reporting reforms will especially benefit smaller firms, for who Solvency II compliance has been a significant overhead.
“The PRA believes that these proposals would, in particular, reduce the reporting burden for smaller firms,” the regulator explained.