Prudential Regulation Authority Rulebook

26.1

The lines of business referred to in 10.1 of the Technical Provisions Part are those set out in Annex 1.

26.2

The assignment of an insurance or reinsurance obligation to a line of business must reflect the nature of the risks relating to the obligation. The legal form of the obligation is not necessarily determinative of the nature of the risk.

26.3

Provided that the technical basis is consistent with the nature of the risks relating to the obligation, health insurance obligations pursued on a similar technical basis to that of long-term insurance business must be assigned to the lines of business for long-term insurance business and health insurance obligations pursued on a similar technical basis to that of general insurance business must be assigned to the lines of business for general insurance business.

26.4

Where the insurance obligations arising from the operations referred to in paragraph V, VI, VII or VIII of Part II to Schedule 1 of the Regulated Activities Order cannot clearly be assigned to the lines of business set out in Annex 1 on the basis of their nature, they must be included in line of business 32 as set out in Annex 1.

26.5

Where a contract of insurance covers risks across long-term insurance business and general insurance business, the insurance or reinsurance obligations must be unbundled into their long-term insurance business and general insurance business parts.

26.6

Where a contract of insurance covers risks across the lines of business as set out in Annex 1, the insurance or reinsurance obligations must, where possible, be unbundled into the appropriate lines of business.

26.7

Where a contract of insurance includes:

1. (1) health insurance obligations or health reinsurance obligations; and 
2. (2) other insurance or reinsurance obligations;