Premiums for New Business | Prudential Regulation Authority Handbook & Rulebook
Prudential Regulation Authority Rulebook

Prudential Regulation Authority Rulebook

Part

Conditions Governing Business

Chapter

Premiums for New Business

Printed on: 11/06/2025

Rulebook at: 01/02/2024


10

Premiums for New Business

10.1

A firm must not enter into a contract of long-term insurance unless it is satisfied, on reasonable actuarial assumptions, that the premiums receivable shall be sufficient:

  1. (1) to enable the firm to meet all of its commitments; and
  2. (2) in particular, to establish adequate technical provisions as required in the Technical Provisions Part of the PRA Rulebook.

[Note: Art. 209 of the Solvency II Directive]

  • 01/01/2016

10.2

For the purposes of 10.1, all aspects of the financial situation of the firm may be taken into account, provided that input from resources other than premiums and investment income expected to be earned from premiums is not systematic and permanent in a way that may jeopardise the long-term solvency of the firm.

[Note: Art. 209 of the Solvency II Directive]

  • 01/01/2016