Regulatory Alerts2026-04-29
PRA Publishes Plans to Support Resilience in the Life Insurance Industry
The Prudential Regulation Authority proposes enhanced capital requirements for UK life insurers using funded reinsurance, aligning their regulatory treatment with other standard investments. By shifting average capital holdings from two to four percent toward ten percent, the rules better reflect counterparty default risk while reducing incentives for excessive reliance on offshore reinsurers. Effective for new and ongoing business from 1 October, the measures aim to safeguard pensioners and policyholders while encouraging greater direct investment in the UK economy.
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