Changes in insurance reporting requirements – PS16/18

PS16/18 provides feedback on responses to CP2/18 on changes in insurance reporting requirements and the PRA’s final policy.
In CP2/18, the PRA proposed changes to:

  • the scope, content and/or format of the National Specific Templates (“NSTs”)
  • SS11/15 on quarterly reporting waivers
  • rule 5.2 of the Change in Control Part of the PRA Rulebook to exempt mutuals from submitting Annual Controller Reports if they do not have a Controller

The PRA has made minor amendments to aid clarity on the NSTs but otherwise the final rules reflect the proposals.

Changes to NSTs

Revised NSTs will need to be produced for financial year-ends on or after 31 December 2018:

TemplateChange from 31 December 2018
NS.01With-profits value of bonusonly required for funds where the with-profits best estimate liabilities are more than £500m
NS.02With-profits assets and liabilitiesonly required for funds where the with-profits best estimate liabilities are more than £500m
NS.05Revenue account lifereduction in information required due to overlap with variation analysis in QRTs
NS.07Business model analysis (non-life)- changes to bring into line with Solvency II reporting templates
- simplified format
- same information now required for all business plan years
- some additional items for business model analysis
NS.09Best estimate assumptions for life insurance risksexemption from reporting data for sub-categories 2 and 3 where the previous line(s) already cover at least 50% of the business for that product (in terms of number of policies)
NS.10Projection of future cash flows (Best Estimate - non-life: liability claim types)- substantial layout changes
- some changes to content
- all non-life firms now required to submit (but can be a null return)
NS.11Non-life claim development information- removal of information relating to inflation
- changes to criteria, layout and cell referencing to align with S.19.01.01

There are no changes to NS.00, NS.03, NS.04, NS.06, NS.08, NS.12 or NS.13.

Quarterly Reporting Waivers

Category 4 and 5 firms will no longer have to apply via the formal quarterly reporting waiver application process. Instead, Category 4 and 5 firms can get a modification by consent, which will apply from quarter 3 2018 onwards.

Annual Controllers Report

There is currently an exemption for friendly societies to not have to submit the Annual Controllers Report (REP002 Controllers Report) unless aware of the existence of a Controller. The exemption will be extended to all mutual from 1 September 2018.