Prudential Regulation Authority Rulebook

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] and the Society of Lloyd’s. It sets out the Prudential Regulation Authority’s (PRA’s) expectations of firms regarding their own risk and solvency assessment (ORSA), including the ORSA report, the firm’s policy regarding its ORSA, and the associated processes.

1.2

This SS should be read together with SS41/15, ‘Solvency II: applying EIOPA Set 2, System of Governance, and ORSA Guidelines’,² the PRA’s rules in the Solvency II Sector of the PRA Rulebook, and the PRA’s insurance approach document.^[3]

1.3

This SS expands on the PRA’s approach to insurance supervision 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.

1.4

For non-life firms, this supervisory statement should be read together with the SS26/15 ‘ORSA and the ultimate time horizon – non-life firms’.^[4]