In May 2013 the PRA issued Solvency II data exercises covering 4 areas:
- Comparison of ICAS, standard formula SCR and internal model SCR,
- Standardised risk information,
- Credit benchmark portfolio survey,
- Stochastic simulations survey.
The PRA has now published its feedback on the information it received from insurers. On the whole, the PRA reports that the quality of data was generally good, with life insurers tending to come out ahead of general insurers. Some general insurance firms were unable to supply Solvency II numbers, giving an indication of their unreadiness for Solvency II.
The PRA reports that actuaries and supervisors have contacted firms to discuss results, and are using this information to inform ongoing supervisory review work.
By the end of this quarter the PRA will give an indication of its plans for Solvency II data collection exercises in 2014 and 2015 for both standard formula and internal model firms.
Barnett Waddingham comments
It is not surprising that some general insurance firms came off worse, as there are a lot more medium and small sized general insurers going down the internal model route.
It is good to receive feedback from the PRA; we are looking forward to seeing what the PRA comes up with regarding early warning indicators and encouraging these are robust for firms of all sizes.