Clifford Chance

The PRA publishes Solvency UK consultation paper

11 July 2023

The PRA recently published consultation paper CP12/23, Review of Solvency II: Adapting to the UK Insurance Market. This comprehensive consultation paper, which is accompanied by draft rules and amendments to supervisory statements outlined in the appendices, introduces significant changes to Solvency II and aims to establish a new regulatory framework for insurers in the UK, referred to as Solvency UK.

The government hopes that Solvency UK will lead to a more competitive and dynamic insurance sector in the UK while maintaining high standards of policyholder protection. The Solvency UK reforms form part of a wider package that will be implemented through government legislation and PRA rule changes. Some reforms are expected to be implemented by the end of this year, and the remainder in 2024.

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