Transitional resets pose reporting challenge for insurers

Uncertainty over approval process leaves firms “in limbo”

uk-pra-london
Insurers are unsure whether to assume a PRA go-ahead on TMTP resets when reporting

A recent decision to allow UK insurers to recalculate a key Solvency II transitional measure has left them uncertain about the effect on their reporting and hedging.

Although the industry welcomed the Prudential Regulation Authority's (PRA) invitation for firms to recalculate the transitional measure on technical provisions (TMTP), following the UK's June 23 referendum vote to leave the EU, they are questioning how long the approvals will take and whether to assume a go-ahead from the regulator