PRA announces new Quantitative Impact Study
On 16 June 2021, the PRA published some high level information on its intention to run a Quantitative Impact Study (“QIS”) as part of its review of Solvency II. It states that it is of relevance to all SII firms and is expected to be a significant technical undertaking for participating firms, especially life insurers. Three items will be considered – matching adjustment, risk margin, transitional measure on technical provisions – but for many smaller firms only risk margin will be relevant. Participation is strongly encouraged by the PRA but voluntary. Firms may now wish to consider whether in principle they plan to take part, whilst waiting for more detail before making a definitive decision. The QIS will be launched in summer 2021 with three months to respond. SDA is in a good position to assist firms in taking part, so please get in touch if you would like to discuss.