Reinsurance News
Bank of England
PRA consults on funded reinsurance capital reform for UK insurers
29th April 2026
The Bank of England, through its Prudential Regulation Authority (PRA), has issued a consultation on changes to how funded reinsurance is treated under UK insurance capital rules. The consultation proposes bringing funded reinsurance more closely in line with the capital treatment applied to other types of investments held by UK life ... Read the full article
Funded reinsurance and offshore financing a concern for the PRA
18th September 2025
The Bank of England (BoE) is hardening its approach on the use of funded reinsurance and offshore financing by UK life insurers, aiming to balance innovation with financial stability as the bulk purchase annuity (BPA) market continues its rapid expansion. In a speech at the Bank of America annual CEO conference, ... Read the full article
BoE updated supervisory expectations to strengthen climate risk management for insurers
6th May 2025
As economic and insurance exposures in high-risk regions are likely to increase with climate change, impacting banks’ and insurers’ ability to support clients, the Bank of England has updated its supervisory expectations to help guide these firms in managing climate-related financial risks. In recent years, the world has faced a number ... Read the full article
PRA shares design and timetable for its 2025 dynamic general insurance stress test
18th July 2024
UK regulator the Prudential Regulation Authority (PRA) has revealed the design for its dynamic general insurance stress test (DyGIST), scheduled to take place in 2025. The plan to run this stress test was announced in October last year, alongside the DyGIST three objectives. One is the assessment of the UK general ... Read the full article
UK life insurance market sees positive growth amid emerging risks: AM Best
18th June 2024
Credit rating agency AM Best maintains a stable outlook for the UK life insurance segment, highlighting strong growth in pension risk transfers and the positive impact of higher interest rates on investment yields. Pension-related products continue to drive substantial growth in the UK's life insurance segment. These products are projected to ... Read the full article
BoE to keep funded reinsurance under review
12th January 2024
In a letter to Chief Executive Officers (CEOs), the Bank of England (BoE) has said that it continues to "pay close attention to the role of funded reinsurance in the UK life market," amid continued growth in the country's life insurance sector and strong demand in the bulk purchase annuity ... Read the full article
BoE’s PRA proposes stricter guidelines for insurers utilising funded reinsurance
20th November 2023
In response to the rapid growth in the UK Bulk Purchase Annuity (BPA) market, the Prudential Regulation Authority (PRA) has put forth proposals aimed at enhancing the risk management and structuring of funded reinsurance arrangements. The PRA's concerns center around the specific risks associated with these arrangements, particularly the challenges in ... Read the full article
BoE conducts System-wide Exploratory Scenario to assess financial stability
10th November 2023
The Bank of England (Bank) has initiated the scenario phase of the System-wide Exploratory Scenario (SWES), a comprehensive assessment aimed at understanding the dynamics of banks and non-bank financial institutions in stressed market conditions. Launched in June 2023, the SWES involves more than 50 financial market participants, including major banks, insurers, ... Read the full article
Survey shows confidence in UK financial system remains stable, while concerns shift: BoE
18th October 2023
The latest Systemic Risk Survey conducted by the Bank of England reveals that market participants maintain a high level of confidence in the stability of the UK financial system. The survey, which collected responses from 56 firms, representing a robust 65% response rate, offers a comprehensive overview of market sentiment regarding ... Read the full article
PRA to conduct dynamic general insurance stress test in 2025
4th October 2023
UK regulator the Prudential Regulation Authority (PRA) has revealed plans to conduct a dynamic general insurance stress test in 2025. The objectives of this dynamic stress test, which is scheduled to take place in 2025, are threefold. The PRA aims to evaluate the solvency and liquidity resilience of the insurance industry ... Read the full article
Bank of England to develop new lending tool for insurers
3rd October 2023
The Bank of England (BoE) is planning to develop a new lending tool for insurers, and other non-bank financial institutions like pension funds, to provide access to emergency cash during times of market stress. This new tool is to be created to help avoid a repeat of last year's bond market ... Read the full article
BoE’s PRA thematic review reveals concerns over general insurance claims inflation
28th June 2023
In a recent thematic review conducted by UK regulator the Prudential Regulation Authority (PRA), part of the Bank of England, across the general insurance sector, concerns have been raised regarding the impact of claims inflation on general insurance claims. The review focused on how insurance firms have responded to a previous ... Read the full article
BoE’s PRA warns UK life insurers of key risks in FundedRe arrangements
16th June 2023
UK regulator the Prudential Regulation Authority (PRA), part of the Bank of England, wrote to life insurers to highlight the key risks about the use of funded reinsurance (FundedRe). FundedRe involves transferring the significant risks of both asset/investment and longevity to a reinsurer, effectively transferring all the substantial risks associated with ... Read the full article
Reinsurance risk part of UK’s PRA 2023 priorities
12th January 2023
Reinsurance risk is one of the Prudential Regulation Authority’s (PRA) priorities for the supervision of life and general insurers in 2023, the Bank of England revealed. Part of the UK's central bank, the PRA is responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major ... Read the full article
Bank of England warns re/insurers on inflationary risks to solvency
21st October 2022
The Bank of England has published a letter sharing insights from its recent thematic review across the general insurance sector focusing on the effect of claims inflation on general insurance claims. The review found that the impact of a persistent spike in claims inflation may result in a material deterioration of ... Read the full article
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