The final rules on how to implement the Solvency II
Directive (Solvency II) have been published by the Prudential
Regulation Authority (PRA).
The rules will come into effect January 2016 and will apply to
around 400-450 retail and wholesale UK insurance firms and to the
Lloyd's insurance market.
Andrew Bailey, Deputy Governor, Prudential Regulation, Bank of
England and CEO of the PRA said: 'Solvency II represents a
fundamental change in the way that insurers are regulated.'
Bailey added that the papers 'provide clarity for UK firms
on how the PRA will implement the new regime – acting in the
interests of the wider economy and ensuring an appropriate level of
policyholder protection. These publications will allow firms to
finalise their preparations for Solvency II in order to be ready
for the start of the regime on 1 January 2016.'
