Commenting on the publication of the PRA’s Consultation Paper 19/24 ‘Closing liquidity reporting gaps and streamlining Standard Formula reporting’, Huw Evans, KPMG UK Head of Insurance, said:
“These new liquidity reporting requirements aim to improve the PRA’s access to timely and consistent information on insurers’ liquidity positions – an issue that came to the fore during the gilt market stresses in 2022.
“The requirements primarily affect 9 life insurance companies in the UK that are expected to fall within scope of these new rules. The impacted insurers will be glad the PRA has taken some of the industry feedback on board, particularly around the difficultly of providing granular historic insurance business cash flow data. Nevertheless, the proposed requirements are a step change in the volume and frequency of liquidity reporting and these firms may need significant investment in systems, collateral and treasury management to meet the granular reporting obligations. This is a significant addition to the regulatory requirements facing the major UK life insurers.”
