IUA Circular 024/24
PRA Solvency Exit Planning Requirements - practical implications for insurers
with guest speakers from KPMG
Alisa Dolgova, Insurance Prudential Regulation Sector Lead for the EMA Financial Services Regulatory Insight Centre (RIC)
and
Matthew McLeod
Financial Risk Manager
Event Date: 21 March 2024
Time: 12 noon for approx 1 hour (UK/London time)
Venue: Online only
Subject: At this market briefing, our guest speakers will shed light on the upcoming PRA requirements for (almost) all insurers to prepare for solvent exit, including practical considerations for designing a Solvent Exit Plan.
This is a free event, but names and email addresses of all attendees are required for registration.
The PRA is introducing requirements for insurers to plan for a solvent exit. Most notably, almost all UK insurers will need to produce and maintain a Solvent Exit Analysis (SEA), setting out how they would approach exiting the market – irrespective of how unlikely this might be.
While firms can leverage existing BAU risk management and scenarios to some extent, for most insurers this will be the first time they formally have to consider their exit strategy. Under the PRA’s own cost benefit analysis, the additional work is likely to require 2 FTEs to familiarise themselves with the proposals, conduct a gap analysis, set up internal governance and put together a first SEA.
During this market briefing, our presenters will share insight on the PRA’s upcoming expectations. They will draw on their experience in supporting insurers with recovery and resolution planning to provide practical insight on key challenges including:
• Scenario development: developing scenarios and projections, adapting planning for stressed and non-stressed exit
• Identifying risks and barriers to solvent exit: from mapping legal contracts to considering vulnerable customers, firms will need to set out and potentially address obstacles to resolvability
• Communication: identifying key internal and external stakeholders and how they should be engaged
• Governance and assurance: PRA’s expectations on governance, including designating the responsible SMF
There will be ample opportunities for delegates to ask questions to our panel.
Our Speakers:
Alisa Dolgova is the Insurance Prudential Regulation Sector Lead for the KPMG EMA Financial Services Regulatory Insight Centre (RIC). The RIC provides insight into the regulatory agenda, and offers subject matter expertise on the potential business and regulatory impact for clients. Alisa has over fourteen years experience across policy and insurance regulation. She covers a wide range of issues that impact the insurance industry from a regulatory perspective, with a focus on prudential regulation and cross-border complexity
Matthew McLeod is a qualified Financial Risk Manager and has been a member of the Financial Risk Management Team since he joined KPMG in 2011. He has experience of supporting banks, insurance companies and asset managers with a range of technical topics including Solvency II and the ICAAP regime, as well as broader experience in risk and capital management. Matt has a wealth of recovery and resolution planning experience, including supporting one of the UK’s largest insurance groups to develop their Recovery and Resolution Plan including design of a framework for delivering the RRP.