News release
Today, the Prudential Regulation Authority (PRA) published Policy Statement 15/24 finalising PRA rules and policy materials that will replace Solvency II assimilated law. The publication marks the conclusion of the PRA’s phased consultation approach to the Solvency II Review, which began following the Government’s announcement in 2020.
These reforms and restatement of rules provide a new regulatory framework for maintaining the safety and soundness of insurance firms and protecting their policyholders. Importantly, they will also advance the PRA’s secondary competitiveness and growth objective by providing a more streamlined and flexible regulatory regime, enabling opportunities for productive investment in the UK and facilitating entry into the UK insurance market.
Sam Woods, CEO of the PRA, said: “This is a significant milestone, marking the end of four years of intense work to deliver our post-Brexit framework for the insurance sector. The UK’s new regime will be implemented in full from the end of 2024.”
Looking ahead
The PRA will continue to evolve its prudential regulatory framework for the insurance sector as part of its continuing policy making activity in 2025 and beyond.
Notes to editors
- The new UK prudential regime for insurers will eventually be known as ‘Solvency UK’. However, for clarity and internal consistency of the PRA’s policy materials, the PRA will continue to refer to the regime as Solvency II until such time as all references to Solvency II can be changed across all relevant materials.
- CP5/24 – Review of Solvency II: Restatement of assimilated law
- CP12/23 – Review of Solvency II: Adapting to the UK insurance market
- Government’s Review of Solvency II: Consultation – Response
- PS2/24 – Review of Solvency II: Adapting to the UK insurance market
- PS3/24 – Review of Solvency II: Reporting and Disclosure phase 2 near final
- PS10/24 – Review of Solvency II: Reform of the Matching Adjustment