Clifford Chance

Solvency UK reforms: analysis of key policy statements and consultations

22 May 2024

The first half of 2024 has seen significant activity around Solvency II reforms in the UK. The Prudential Regulation Authority (PRA) has released a series of policy statements and consultations, while HM Treasury has issued legislation to implement the new "Solvency UK" regime. This briefing aims to provide a clear analysis of these key developments.

The briefing examines the PRA's first two Policy Statements on Solvency UK (PS2/24 and PS3/24), outlining the material changes from the previously consulted policies. It also unpacks the PRA's recent clarifications on proposed reforms to the Solvency II Matching Adjustment (MA), with the final Policy Statement on MA reforms expected next month. Finally, the briefing explores Consultation Paper CP5/24, which represents the final step in restating Solvency II rules under the new Solvency UK framework. This comprehensive briefing is designed to equip insurers and stakeholders with the knowledge they need to navigate the evolving regulatory landscape and prepare for the upcoming Solvency UK regime.

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