UK insurers to face tough model governance standards under ICAS+ regime
The Prudential Regulation Authority is quietly developing its transitional risk-based capital modelling regime to help insurers prepare for Solvency II. But many aspects of how Icas+ will operate remain unclear and insurers are likely to face tough governance requirements if they wish to participate. Hugo Coelho reports
It has been nearly 18 months since the UK’s Financial Services Authority (FSA) first indicated that insurers would be able to use their Solvency II internal models to meet current risk-based capital requirements.
The move, aimed at relieving the capital modelling burden on firms in the build-up to the implementation of Solvency II, has become one of the key issues for UK insurers this year, as the many nuances of this become apparent.
But the way this process, called Icas+, whereby an insurer’s
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