De-risking funded reinsurance arrangements in the UK life insurance sector

Francis Richard Pereira assesses how changes to regulation will impact the PRT market

clock • 7 min read
Francis Richard Pereira: The Prudential Regulation Authority’s enhanced regulatory oversight will also govern use of funded reinsurance by UK pension risk transfer (PRT) insurers.
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Francis Richard Pereira: The Prudential Regulation Authority’s enhanced regulatory oversight will also govern use of funded reinsurance by UK pension risk transfer (PRT) insurers.

The Prudential Regulation Authority’s (PRA’s) supervisory statement on funded reinsurance – expected this month (July 2024) – aims to establish consistent standards across the UK life insurance industry and set additional expectations for UK life insurers on risk management, modelling of solvency capital requirements (SCR) and on the structuring of funded reinsurance arrangements.

The enhanced regulatory oversight will also govern use of funded reinsurance by UK pension risk transfer (PRT) insurers. Funded reinsurance arrangements – also known as FundedRe, asset-intensive...

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