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Review of insurance solvency standards

It is over seven years since we introduced the current form of our solvency standards (in 2014) and it is time to review how well they are functioning. The review will be phased over three years (2021 to 2023) and include several cycles of public consultation.

Quantitative impact assessment

In Q4 2021, we are conducting a quantitative impact assessment with selected insurers to help us understand the capital impacts of the draft interim solvency standard.

To help other insurers and their advisers with their analyses, we have published our assessment template, together with supporting instructions. This template will likely form the basis for the insurer solvency return once we implement the new standard.

About the quantitative impact assessment instructions

These instructions were designed for use in the quantitative impact assessment and not intended for other uses. We are releasing them to maximise transparency around the process.

The instructions include certain treatments that may or may not become part of the enforced standard and we have no obligation to adhere to these treatments in later versions of the standard.

Submissions on the draft interim solvency standard should make reference to the document as published on 22 July 2021, not to these instructions.

Draft interim solvency standard released for comment

On 22 July 2021, we released three documents relating to the review of the insurance solvency standards. The consultation will run until 5pm on 1 October 2021.

Read more about the draft interim solvency standard consultation

Consultation on solvency standards structure and IFRS 17

Between November 2020 and February 2021, we consulted on the structure of the insurance solvency standards and our approach to IFRS 17

We released a feedback statement and summary of submissions relating to the consultation on 4 March 2021.

Read more about the 2020 consultation

Feedback on guiding principles consultation

On 4 March 2021, we released a feedback statement for our consultation on the structure of the insurance solvency standards and our approach to IFRS 17. Our statement describes several changes to the principles we will make in response to the submissions we received.

In March 2021, we also published the submissions from the principles and timeline consultation.

Timeline for review and guiding principles

Our review of the insurance solvency standards began with the release of an initial paper on 1 October 2020, which set out the anticipated timeline for the review and several guiding principles.