The Prudential Regulation Authority (PRA) set out its proposals for PRA-regulated insurers to prepare for an orderly solvent exit as part of ongoing business-as-usual activities in Consultation Paper 2/24 last week. The intent is to increase confidence that insurers can exit the market with minimal disruption, however significant work is anticipated across the industry.

The consultation on solvent exit planning for insurers follows a similar consultation for non-systemic banks and building societies in 2023. It's intended to contribute to the PRA’s ongoing work to avoid firms relying on insolvency or resolution processes when exiting a market. All PRA-regulated insurers, except for firms in a passive run-off and UK branches of overseas insurers, are in scope of the proposed rules.

Read our latest newsflash, where we look at the requirements and potential impact that the proposals will have on insurers.

Click here to read our full newsflash

This communication is intended for insurers, reinsurers, asset managers and banks only. It is published for informational purposes only, and does not constitute advice.