The Insurance Europe Reinsurance Advisory Board (RAB) has submitted a four-page response to the UK Prudential Regulation Authority’s (PRA) advice on proposed changes to the requirements and expectations of Solvency II reporting in the UK market. In response, the ABAB called on the PRA to ‘expand or wait’.
On the location paper seen by Insurance businessThe Board said: “ABAB is aware of the review of Solvency 2 adopted by His Excellency the Treasury, which has contributed to this. However, given the time limit set by the PRA for the Temporary Permission Regime (TPR), the transitional relief period granted to companies operating in the TPR will expire before a decision is made and is incorporated into law.
“The ABAB will ask the PRA to consider specific reinsurance treatment before the end of the transitional relief period or extend the transitional relief time until the results of the HMT review are known and implemented.”
In ABB’s view, the above approach may prevent companies from spending valuable time and resources providing reporting requirements that may later be discontinued or amended, with some believing that it is not suitable for reinsurance.
“This will eliminate the need for companies to apply for a waiver or change the reporting rules, as well as the need for a PRA. [to] Evaluate any such application, ”the board added.
In its response, the RAB also suggested some adjustments that stated that the proposed requirements accurately capture specific features of reinsurance activities.
The position paper states: “The purpose of the recommendations is to ensure fair competition and equal access to the UK market. The ABAB wants to emphasize that EEA (European Economic Area) reinsurers are subject to the same domestic rules as the UK rules, so they have no advantage over UK-based reinsurers in terms of their capital and reporting requirements.