PRA FundedRe requirements 'unlikely' to lead to material hit on bulk annuity pricing

Guidance ensure appropriate controls are in place to maintain policyholder protection

Jonathan Stapleton
clock • 2 min read
The PRA is run by the Bank of England
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The PRA is run by the Bank of England

The Prudential Regulation Authority’s (PRA’s) supervisory statement on the use of FundedRe across the industry is “unlikely” to have a material impact on bulk annuity pricing, Aon says.

Funded reinsurance arrangements – also known as FundedRe, asset-intensive or collateralised reinsurance ­– seek to transfer both investment and longevity risks to reinsurance counterparties. In ...

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