PRA sharpens focus on funded reinsurance

Having warned about the potential dangers of “funded reinsurance” for some time now, the UK's Prudential Regulation Authority has recently finalised a new supervisory statement setting out its expectations of life insurance firms that cede risk using these types of arrangement. 

The PRA’s new policy in this area took effect immediately on publication, on 26 July 2024. Firms which use, or are looking to use, funded reinsurance are asked to consider their alignment with the new expectations “as soon as practicable” and to provide the PRA with various information – including an implementation plan – by 31 October 2024.

Read more in our client alert.