1
Application and Definitions
1.1
Unless otherwise stated, this Part applies to:
- (1) every UK Solvency II firm:
- (a) that is a member of a group for which the PRA is the group supervisor;
- (b) that is a member of a group for which a supervisory authority (other than the PRA) is the group supervisor, subject to (c) and to the extent this Part gives effect to the Solvency II EEA implementing measures in the territory of its group supervisor; and
- (c) where the group supervisor of a group of which a firm is a member is a supervisory authority in Gibraltar, the requirements of the Solvency II EEA implementing measures in that territory apply to the firm in relation to its capacity as a member of that group;
- (2) in accordance with Insurance General Application 3, the Society as a mixed activity insurance holding company, as modified by 21; and
- (3) a UK holding company.
- 31/12/2020
1.2
In this Part, the following definitions shall apply:
means a situation in which two or more persons are linked by control or participation, or a situation in which two or more persons are permanently linked to one and the same person by a control relationship.
[Note: Art. 13(17) of the Solvency II Directive]
means the group SCR of a group based on consolidated data calculated in accordance with 11.2.
means Commission Delegated Regulation (EU) 2015/35 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II), as it has effect as retained direct EU legislation as at 31 December 2023.
means a person who receives services and who is outside of the group of which the firm is a member.
means an internal model used to calculate the consolidated group SCR, as well as the SCR of Solvency II undertakings in the group.
means, for the purposes of determining the group SCR using the standard formula, a parameter specific to a group, calculated in accordance with Group Supervision 11A, that replaces a standard parameter (within a subset of parameters in the life underwriting risk module, non-life underwriting risk module or health underwriting risk module).
means (in relation to a group) the authority designated as group supervisor in relation to that group, in accordance with Solvency II EEA implementing measures implementing Article 247 of the Solvency II Directive or in accordance with regulation 26 of the Solvency 2 Regulations.
means a firm that has a been granted a GSP Permission.
means the method for calculating the group specific parameter in respect of which the firm has been granted a GSP Permission, determined in accordance with 11A.
means the permission to apply a group specific parameter granted to a firm by the PRA pursuant to section 138BA of FSMA.
means the maximum tolerable level of disruption to an important business service or an important group business service as measured by a length of time in addition to any other relevant metrics.
means a service provided by a firm, or by another person on behalf of the firm, to another person which, if disrupted, could pose a risk to:
- (1) where the firm is a relevant Solvency II firm, the stability of the UK financial system;
- (2) the firm’s safety and soundness; or
- (3) an appropriate degree of protection for those who are or who may become the firm’s policyholders.
important group business service
means a service provided by a member of the firm’s group (other than the firm) to an external group end user which, if disrupted, could pose a risk to:
- (1) where a relevant Solvency II firm is a member of the group, the stability of the UK financial system;
- (2) the firm’s safety and soundness; or
- (3) an appropriate degree of protection for those who are or may become the firm’s policyholders.
means an insurance holding company or a mixed financial holding company through which a Solvency II undertaking in a group holds a participation in a related Solvency II undertaking, a third country insurance undertaking or a third country reinsurance undertaking.
has the meaning given in section 424A of FSMA.
mixed activity insurance holding company
means a parent undertaking, other than a Solvency II undertaking, a third-country insurance undertaking, a third-country reinsurance undertaking, an insurance holding company or a mixed financial holding company, the subsidiary undertakings of which include at least one Solvency II undertaking.
[Note: Art. 212(1)(g) of the Solvency II Directive]
own funds eligible for the group SCR
means:
- (1) in relation to method 1, the own funds eligible for the group SCR in accordance with 11.1(3); and
- (2) in relation to method 2, the aggregate eligible own funds of the group referred to in 12.2.
own funds eligible for the SCR
means the aggregate of the firm’s:
- (a) Tier 1 own funds; and
- (b) eligible Tier 2 own funds; and
- (c) eligible Tier 3 own funds.
has the meaning given in section 143F(1) of FSMA.
participating Solvency II undertaking
means a Solvency II undertaking that holds a participation in another undertaking.
means a firm which fulfils any of the following conditions:
- (1) the firm’s annual gross written premium income exceeds £15 billion; or
- (2) the total of the firm’s technical provisions, gross of the amounts recoverable from reinsurance contracts and UK ISPVs, as referred to in Technical Provisions 2.1 to 2.3 exceeds £75 billion,
determined on the basis of the average annual amount assessed across a rolling period of three years, assessed by reference to the firm’s accounting reference date; and where the firm has been in existence for less than three years, the assessment will be made on the basis of the annual average amount for the period during which the firm has existed (calculated by reference to the firm’s accounting reference date).
related Solvency II undertaking
means a Solvency II undertaking that is a related undertaking of another undertaking.
Solvency II EEA implementing measures
means any measures implementing the Solvency II Directive in Gibraltar.
means the amount (if any) by which the related undertaking’s eligible own funds fall short of its solvency capital requirement under the SCR Rules or the relevant Solvency II EEA implementing measures as appropriate.
means the national authorities empowered by law or regulation of the UK or Gibraltar to supervise Solvency II undertakings for the purposes of the provisions implementing the Solvency II Directive including the PRA, FCA and Financial Services Commission of Gibraltar (FSC).
means a territory or country other than the United Kingdom or Gibraltar.
third country insurance undertaking
means an undertaking, other than a Gibraltarian insurance undertaking, that has its head office outside the UK and if its head office were situated in the UK would:
- (1) need Part 4A permission; and
- (2) satisfy the conditions set out in Insurance General Application 2.2.
third country reinsurance undertaking
means an undertaking, other than a Gibraltarian insurance undertaking that pursues only the business of reinsurance and has its head office outside the UK and if its head office were situated in the UK would:
- (1) need Part 4A permission; and
- (2) satisfy the conditions set out in Insurance General Application 2.2.
- 31/12/2024