A preview of the upcoming Life Conference 2023 session on meeting the new regulations for pension providers.
Resolution planning has recently been, unsurprisingly, the focus of much regulatory attention, given the current macroeconomic climate and a series of recent bankruptcies in the global financial industry.
The Prudential Regulation Authority (PRA) has launched and accelerated a major initiative on recovery and resolution plans for insurers, declaring resolution planning as one of its 2023 priorities.
His Majesty’s Treasury (HMT) issued a consultation paper on the proposed resolution regime for insurers in January this year, with the consultation outcome published in August.
We recognise that several insurers are concerned by the new wide-ranging regulatory powers being introduced.
With the increased scrutiny from the PRA, many UK insurers now have to produce new or updated recovery and resolution plans, both for their boards and for the UK regulators. The current volatile and uncertain state of the financial markets and indicators makes these plans highly relevant right now.
There are no outlined regulatory requirements as to the content and the level of detail needed in the recovery and resolution plans. There are also no prescribed definitions of circumstances in which firms first initiate recovery plans or when to then trigger a resolution stage.
The circumstances leading to the resolution of an insurer are unique to each company and can usefully be described by the ‘Anna Karenina’ principle: all happy families are alike; each unhappy family is unhappy in its own way.
The set of options available to an insurer to have an orderly resolution will be specific to their profile and situation.
We will commence our presentation at Life Conference 2023 with the general requirements for recovery and resolution plans, how they link in with the current Solvency II rules, and the emerging regulatory developments in this area, both in the UK and globally.
We will then cover a case study on how NFU Mutual approached this task, the issues it faced, and the solutions adopted. The case study will cover:
We look forward to sharing our experience with you on the practical aspects of resolution planning!
Don’t miss Tatiana Egoshina and John Jenkins (Milliman) and Andrew Hague (NFU Mutual) on day 3 of Life Conference 2023 (22 to 24 November) in Birmingham, UK. Book your place.
