PRA internal model demands excessive, say insurers

Companies struggling to reconcile long- and short-term views

The Bank of England in London

The internal modelling standards demanded of UK life insurers by the Prudential Regulation Authority (PRA) are "excessive", according to industry contacts. In April, the PRA hosted an industry workshop for life insurers intending to use an internal model for Solvency II purposes that highlighted the regulator's ongoing concerns with credit, longevity and market risk modelling practices currently in use. But companies increasingly feel the requirements asked of them are unreasonable. David Ste

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