PRA consults on Solvency II reporting changes

The Prudential Regulation Authority is consulting on the second phase of reforms to Solvency II supervisory reporting, building on an earlier cut in reporting volumes. The proposals affect UK insurers subject to Solvency II reporting and would apply to both annual and quarterly submissions from late 2024.

The PRA’s multi‑stage review of supervisory reporting began in 2021 and is progressing through defined phases over several years. Policy Statement 29/21, titled “Review of Solvency II: Reporting (Phase 1)”, formed the first formal output of this programme. The PRA estimated that Phase 1 delivered a 15–40% reduction in the regulatory reporting burden, mainly through streamlining templates and easing frequency requirements.

Phase 1 changes were implemented through PS29/21, which deleted some existing Solvency II templates and extended the quarterly reporting waiver to Category 3 firms. These amendments took effect for reporting with reference dates on or after 31 December 2021, embedding the first wave of simplification into firms’ regular submissions.

Reporting framework changes under CP14/22

The PRA has now issued Consultation Paper 14/22, titled “Review of Solvency II: Reporting (Phase 2) consultation”. CP14/22 proposes a further suite of reporting changes, including the deletion of some returns, the migration or merger of others, and the introduction of new reporting requirements. The package is framed as the Phase 2 step in the same review that delivered the earlier reduction in reporting volumes.

Under the consultation, the PRA proposes that the Phase 2 changes will apply to all annual and quarterly reporting dates falling on and after 31 December 2024. This would align implementation across reporting frequencies and create a single cut‑over date for firms’ systems and processes.

Wider Solvency II review context

Gareth Truran, PRA Director (Cross‑Cutting and Insurance Policy), gave a speech on the review of the UK Solvency II regime in September 2021, setting out the authority’s broader reform agenda. As part of that wider work, the PRA has also published a discussion paper on possible reforms to the risk margin and matching adjustment within Solvency II.

The PRA has not set out in this facts set when it will finalise CP14/22, beyond the proposed application to reporting dates from December 2024.

--- Sources: https://www.bankofengland.co.uk/prudential-regulation/key-initiatives/solvency-ii https://kpmg.com/xx/en/our-insights/regulatory-insights/regulatory-reporting-and-disclosure-for-insurers.html https://www.skadden.com/-/media/files/publications/2024/01/chapter-3-cross-border-services-and-overseas-branches/fn-119-ss4415december2021.pdf