The reinsurance advisory board (RAB) of Insurance Europe has submitted a four-page response to the UK Prudential Regulation Authority’s (PRA) consultation on proposed changes to Solvency II reporting requirements and expectations in the UK market. In its response, the RAB calls on PRA to either ‘extend or wait’.
In the position paper seen by Insurance Business, the board stated: “The RAB is aware of the review of Solvency II undertaken by Her Majesty’s Treasury, which it has contributed to. However, given the timelines set out in for the Temporary Permissions Regime (TPR) by the PRA, the transitional relief period offered to firms operating in the TPR will come to an end before a decision is made and incorporated into law.
“The RAB would ask the PRA to consider the specific treatment of reinsurance ahead of the end of the transitional relief period or to extend the transitional relief period until the outcome of HMT’s review is known and implemented.”
In the RAB’s view, taking the above approach would avoid firms expending valuable time and resource to deliver on reporting requirements that may then cease to apply or be modified, some of which it believes are not suitable for reinsurance.
“It would also remove the need for firms to apply for waivers or modifications of the reporting rules as well as the requirement for the PRA [to] assess any such applications,” added the board.
In its response, the RAB also suggested adjustments which it said are aimed at ensuring that the proposed requirements appropriately capture the specific characteristics of reinsurance activities.
The position paper reads: “The suggestions outlined are meant to maintain the principle of fair competition in and equal access to the UK market. The RAB would like to stress that EEA (European Economic Area) reinsurers are subject to domestic rules equivalent to the UK rules, so they do not gain any advantage over any UK-based reinsurers in their capital and reporting requirements.”
