PRA: internal model insurers need a ‘plan B’

Firms must prepare in case their models are rejected, says regulator


UK supervisor the Prudential Regulation Authority (PRA) is urging internal model insurers to develop contingency plans in case their model submissions fail to secure supervisory approval.

UK firms should not assume it is appropriate simply to revert to using the Solvency II standard formula if an application is rejected and must ensure they have plans to cover a range of outcomes following the regulator's decision, according to industry sources.

The PRA warned firms during a meeting with the

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The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

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