The International Underwriting Association (IUA) has brought out a guide for insurance companies on solvent exit analysis.
This comes ahead of new requirements from the Prudential Regulatory Authority (PRA) from 30 June that requires firms to document how they would achieve a solvent exit, which is the process where an insurer ceases business but still meets all its liabilities.
The guide sets out regulator’s expectations, practical considerations for companies and summaries of how some members are preparing for new rules.
Nafisah Hussain, director of public policy at the IUA, said that implementation will be different for each company, depending on firms’ size, business model, systemic importance and range of products sold.
She urged companies to draw upon existing information where appropriate to avoid duplicating work from existing requirements.
“The IUA’s new guide aims to ensure that compliance work undertaken will have practical benefits, supporting decision-making around risk appetite, new business ventures, product line changes, third party engagement and operational resilience,” Hussain added.
Companies:International Underwriting Association