UK insurers must take a closer look at how they value the illiquid assets and complex financial products in their investment portfolios after a review by the Prudential Regulation Authority (PRA) found some insurers' practices "insufficiently robust and complete".
The warning from the regulator follows a survey conducted over the summer of insurers' procedures relating to valuation uncertainty.
The PRA observed poor standards of financial asset valuation governance and control, including:
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