Deep dive into the PRA Solvency II MA consultation

Spotlight on risk transfer and insurance series  |  Part 6

The Prudential Regulation Authority's (PRA)’s Consultation Paper 19/23 sets out its proposed approaches to implementing the reforms of the Matching Adjustment that were announced earlier in the year by HM Treasury. In this video, Head of Regulatory Advisory Craig Turnbull is joined by Sarah O’Sullivan of the Phoenix Group for a discussion on some of the key elements of these proposals.

Craig and Sarah focus on perhaps the most contentious aspect of the MA reforms - the proposal for firms to deliver regular attestations on the quality of their MA and the adequacy of the Fundamental Spreads they apply to their MA assets. Here they discuss:

• how the proposed attestation wording has changed from earlier indications; 
• how some aspects of these changes will be welcomed by the insurance sector; and 
• the unexpected new challenges these changes could bring.