KPMG comments on the PRA’s latest policy statement on Funded Reinsurance (13/24)

The PRA has re-iterated today that it is drawing a line in the sand regarding the use of Funded Reinsurance says KPMG

The PRA has re-iterated today that it is drawing a line in the sand

In response to the PRA’s latest policy statement on Funded Reinsurance (13/24), James Isden, Insurance Partner at KPMG UK, said:

“The PRA has re-iterated today that it is drawing a line in the sand regarding the use of Funded Reinsurance. The expectation appears to be that life insurers will, with immediate effect, fundamentally revisit the volume, complexity and risk management of their Funded Reinsurance transactions.

“Firms have until the end of October to submit a convincing plan to their supervisors. It’s now up to insurers to decide how to balance the use of Funded Reinsurance, alongside enhanced oversight considerations for these arrangements, with the threat of further intervention if the PRA is not satisfied with the outcome.”


ENDS

 

About KPMG UK: 

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 18,000 partners and staff. The UK firm recorded a revenue of £2.96 billion in the year ended 30 September 2023.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 273,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients. 

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