Guidance

SS20/16 – Solvency II: reinsurance – counterparty credit risk

Chapter

Introduction

Printed on: 06/11/2024

Rulebook at: 23/05/2024

1

Introduction

1.1

This supervisory statement (SS) is addressed to all UK firms that fall within the scope of the Solvency II Directive (‘the Directive’)[1], third-country insurance branch undertakings and to Lloyd’s. It sets out the Prudential Regulation Authority’s (PRA) expectations of firms with respect to general issues regarding reinsurance and the management of reinsurance counterparty credit risk.

  • 1. Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (recast).
  • 23/05/2024

1.2

This statement should be read in conjunction with the PRA’s rules in the Solvency II Sector of the PRA Rulebook, and the PRA’s insurance approach document.[2]

  • 25/11/2016

1.3

This SS expands on the PRA’s general approach as set out in its insurance approach document. By clearly and consistently explaining its expectations of firms in relation to the particular areas addressed, the PRA seeks to advance its statutory objectives of ensuring the safety and soundness of the firms it regulates, and contributing to securing an appropriate degree of protection for policyholders.

  • 25/11/2016