Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • June 2015
06

PRA sets out expectations of internal models for Solvency II

Open-access content Monday 1st June 2015 — updated 5.13pm, Wednesday 29th April 2020

The Prudential Regulatory Authority (PRA) has set out draft proposals covering the use of internal and partial internal models to calculate solvency capital requirement (SCR).

2

The regulator has published a series of internal model codes, which correspond to different risk categories, and reporting templates in a consultation document. 

The document contains a separate list of codes for life products, similar to the categories used by the Association of British Insurers, which are investment and savings, individual pensions, corporate pensions, protection and annuities.

The PRA is seeking views on the proposals and comments can be submitted to [email protected]. The consultation runs until 10 July. Meanwhile, it has published a supervisory paper, which sets out the regulator's expectations of firms applying for approval to use volatility adjustment (VA).

In the statement Solvency II: supervisory approval for the volatility adjustment, the PRA clarified what items should be included in the application to use the VA, how the PRA would use the content of application to assess whether statutory conditions for approval to use the VA are met, and how the approval process would work. 

The PRA urged all firms to notify their usual supervisory contacts as early as possible if they intend to make an application. It will determine all applications within six months from the date a complete application is received, but for VA approval applications alone (those not dependent on other applications), the regulator said it would aim to make decisions within six weeks from receipt of the application.

This article appeared in our June 2015 issue of The Actuary.
Click here to view this issue
Filed in:
06
Topics:
Regulation Standards

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Underwriting Risk Manager

London (Central)
£85K-£95K + Benefits
Reference
124386

Reserving Manager (Contract)

London (Central)
£1200 - £1400 per day
Reference
124385

Life Actuary - Contract - IFRS 17 Financial Impact

England, London / England, Bristol / North Yorkshire, England
£900 - £1150 per day
Reference
124384
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2022 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ