UK Insurance Horizon Scanner - January and February 2024

MONTH

DATE

DETAILS

JANUARY

5

Solvency II (UK): Closing date for responses to PRA’s 2^nd consultation paper CP 19/23: Reforms to the matching adjustment

12

Insurance branches: Closing date for responses to CP21/23 on the PRA’s approach to the authorisation and supervision of insurance branches.

22

Big tech in financial services: Deadline for feedback to FCA Call for Input: Potential competition impacts from the data asymmetry between Big Tech and firms in financial services | FCA

24

FSCS General Insurance Limit: PRA DP2/23 consultation closes.

31

ESG: Deadline to feedback on the Lloyd’s consultation on insuring the transition to a lower-carbon economy.

FEBRUARY

16

Funded reinsurance: PRA CP24/23 consultation closes.

2024

2024

Review of discount rate for PI damage awards: Next review due of discount rate.

2024

Insurance intermediaries: In May 2022 the FCA wrote portfolio letters to P&CLII and LLMI on key risks and notes that they will write again in 2024 to provide their updated view of the key risks firms in this portfolio pose, the extent to which these risks are being mitigated and their updated supervisory plans.

2024

Bank of England system-wide exploratory scenario exercise (SWES): publication of the final report by the B of E, reporting on results of this exercise (launched in June 2023) to examine the behaviours of banks and non-bank financial institutions during stressed financial market conditions and identify vulnerabilities in the financial system.

2024

PRIIPS: The government intends to publish a draft statutory instrument by 2024 to enable the FCA to deliver the new disclosure regime.  The FCA will publish a consultation paper on its proposed rules.

2024

Mutual insurers: Terms of reference and timeframes relating to Cooperatives, Mutuals and Friendly Societies Act are expected to get underway in early 2024.

2024

Senior Managers and Certification Regime: Consultation paper due in 2024.

2024

Vulnerable customers: As stated in the November 2023 edition of the Regulatory Initiatives Grid, the FCA intend to conduct a post-implementation review of FG21/1 in 2024 to test the effectiveness of firm's implementation and look at how this has impacted on outcomes for customers in vulnerable circumstances. It aims to publish a final report by end of 2024.

H1 2024

Insurance stress test:  For life insurers the PRA aims to publish more details about their approach to the next exercise in the first half of 2024 and invite further technical input on the mechanics of the exercise, including on disclosure.

H1 2024

Funded reinsurance: New supervisory statement to come into force.

H1 2024

Insurance captives: The government will consult on the design of an new framework for insurance captives in the UK.

H1 2024

Solvent exit proposals: PRA/the Treasury will consult on proposals to support solvent exits.

Q1 2024

Solvency II (UK): PRA to publish final policy from 1st consultation paper (CP12/23 Review of Solvency II: Adapting to the UK insurance market).

Q1 – Q2 2024

GI Pricing Intervention: FCA is having discussions with firms about a data request, with actual data collection in Q1 – Q2 2024.

Q2 2024

Solvency II (UK): Publication of 3^rd consultation paper by PRA (to close  in Q2 2024)

Q2 2024

Insurance branches: Final rules and policy statement due and implementation of the PRA’s proposals on authorisation and supervision of insurance branches.

Summer 2024

Change of control: new PRA supervisory statement and FCA guidance on the prudential assessment of change on acquisitions and increases in control come into force.

H2 2024

Diversity and inclusion: FCA and PRA policy statements due.

H2 2024

Operational resilience: PRA/FCA will publish a consultation paper on policy proposals to provide clarification on information to be submitted by firms when operational incidents occur and on collection of information on firms’ outsourcing and third party arrangements.

Q3 2024

Solvency II (UK): PRA to publish 3^rd consultation paper