This blog series is a practical guide on solvent exit planning for practitioners and those charged with governance. Part 1 introduces the IFoA working group behind the guide and lays out what to expect from the blog series.
Solvent exit planning is a new regulatory requirement introduced by the Prudential Regulation Authority (PRA), with formal implementation due by 30 June 2026.
With this deadline approaching, firms are increasingly turning their attention to how they would ensure an orderly, solvent exit from the market. Actuaries and risk professionals are required to exercise judgement and interpretation of the regulations including applying proportionality and provide robust challenge when developing and reviewing their Solvent Exit Analysis (SEA).
In response to this, the IFoA Solvent Exit Analysis Task and Finish Group has been established to share practical insights and support more informed discussion across the profession.
The working group brings together a diverse range of actuarial and risk professionals from across the industry, combining perspectives from insurers, mutuals, consultancies, and professional services. The group comprises:
Between us, we have experience spanning recovery and resolution planning, capital modelling, regulatory reporting, enterprise risk management, and independent review. Several of the group are either actively involved in developing solvent exit analyses and/or advising insurers on developing such analysis. This breadth allows us to explore solvent exit planning from multiple angles and reflect a variety of firms and governance structures across the market.
Our focus is on providing practical considerations for both:
Rather than prescribing a single ‘correct’ approach, our work acknowledges that solvent exit planning is firm-specific. With that in mind, we aim to explore a range of topics that we believe are central to high-quality Solvent Exit Analyses, including:
Our aim is to support practitioners, reviewers, and decision-makers to engage more confidently with solvent exit planning.
By setting out practical considerations and highlighting different approaches observed across the market, we hope to assist:
Ultimately, our goal is to help improve the level of consideration taken when developing and challenging the SEA.
Across this blog series, readers can expect to see a range of viewpoints on the topics outlined above. Where appropriate, we will present contrasting perspectives, recognising that what is suitable for one firm may not be appropriate for another.
Our intention is to help readers form a well-rounded view of the issues, enabling them to make informed, proportionate decisions that are appropriate for their firm’s specific circumstances.
We hope this work proves useful, sparks thoughtful debate, and contributes positively to ongoing development of solvent exit practice across the industry.
