More than a year on from the implementation of Solvency II (SII) and the regulatory focus on insurers remains intense from both regulators. On the prudential side, the PRA will be looking in more detail at how firms are complying with SII as part of its annual cycle of firm risk assessments (PSM). Their focus will be on ensuring firms have embedded key aspects of SII; whether you’re a standard formula firm or an internal model firm you’re likely to be asked to provide evidence of how you continue to meet the requirements.
The FCA remains focused on ensuring fair treatment for long-term customers in the life insurance sector and appropriate oversight of outsourcing arrangements, particularly in relation to the use of delegated authority arrangements in the general insurance sector. And of course, insurers that sell insurance products directly will have to comply with the Insurance Distribution Directive by 23 February 2018.
The regulators continue to push firms to improve their governance arrangements, key aspects of which include:
- Embedding the Senior Insurance Managers Regime (SIMR)
- Ensuring there is effective board oversight
- Confirming that the required policies and procedures are in place
- Ensuring that the risk management framework is effective.
Our team of experienced regulatory consultants support clients with all aspects of regulatory compliance, including subject matter experts on:
- SII compliance
- Monitoring compliance with ICOBs or establishing relevant policies and procedures
- Financial crime prevention
- Effective governance
- Risk frameworks
- Outsourcing oversight and resilience
- Preparing for regulatory interactions
- Authorisations and approvals
- Undertaking projects as a result of regulatory interventions.
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