Panayotis Koulovasilopoulos

The Prudential Regulatory Authority (PRA) published its long-awaited policy statement PS10/24, following CP19/23 last year, on reforms to the Solvency II (SII) regime post-Brexit – the new UK 'version' is colloquially known as Solvency UK - for Matching Adjustment (MA) portfolios on 6 June 2024. The consultation paper set out the PRA’s proposed reforms that will enable, what it says are, broader and quicker investment by insurers in their matching adjustment (MA) portfolios, whilst "improving responsiveness to risk and enhancing firms’ responsibility for risk management functions and outcomes". The changes could have massive implications for the investment arms of UK-based insurers in terms of their financial matters and investment strategies. The industry has been more or less positive. “This is a case of evolution, not revolution,” said Huw Evans, Head of Insurance at KPMG UK, on the changes. “These rules ensure a more distinct UK Solvency II regime with some greater flexibility to invest in long-term assets such as infrastructure. Alongside this, are more complex rules policing the Matching Adjustment mechanism.” Also featuring comment from Nick Ford, Partner, Head of Risk & Capital risk, Hymans Robertson and PwC. #solvencyII #solvencyuk #matchingadjustment #insurance #investment #brexit #regulation #prudentialregulationauthority Read more about what it means here 👇

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