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 9; and
3. (3) in accordance with Insurance General Application 3, managing agents, as modified by 9.

1.2

In this Part, the following definitions shall apply:

external group end user

means a person who receives services and who is outside of the group of which the firm is a member.

impact tolerance

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 and other relevant metrics.

important business service

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. (1) where the firm is a relevant Solvency II firm, the stability of the UK financial system;
2. (2) the firm’s safety and soundness; or
3. (3) an appropriate degree of protection for those who are or 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. (1) where a relevant Solvency II firm is a member of the group, the stability of the UK financial system;
2. (2) the firm’s safety and soundness; or
3. (3) an appropriate degree of protection for those who are or may become the firm’s policyholders.

relevant Solvency II firm

means a firm which fulfils any of the following conditions:

1. (1) the firm’s annual gross written premium income exceeds £15 billion; or
2. (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, calculated 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).