Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to:

1. (1) a UK Solvency II firm;
2. (2) in accordance with Insurance General Application 3, the Society, as modified by 12; and
3. (3) in accordance with Insurance General Application 3, managing agents, as modified by 12.

1.2

In this Part, the following definitions shall apply:

closed year

means a syndicate year closed by reinsurance to close, either into another syndicate year or into an insurer approved by the Council for that purpose.

concentration risk

means all risk exposures with a loss potential which is large enough to threaten the solvency or the financial position of a UK Solvency II firm.

[Note: Art. 13(35) of the Solvency II Directive]

corporate member

means a member that is a body corporate or a Scottish Limited partnership. 

liquidity risk

means the risk that a firm is unable to realise investments and other assets in order to settle its financial obligations when they fall due.

[Note: Art. 13(34) of the Solvency II Directive]