The first public submissions of the Solvency and Financial Condition Report (SFCR) for the majority of firms were published in late May this year.
This was a complete rewrite of past public reports required by the regulator, calling for significantly more information on business performance, systems of governance, risk profiles and capital management than in the past. The requirement for details of the actuarial valuation are to some extent similar, but as with the other areas only high level guidance is given, leaving it open to interpretation and potential differences in the level of detail provided.
The new disclosures are intended to help provide consistency across the market and to improve public communications. Barnett Waddingham has performed a review of a material sub-section of the UK Insurance market to understand if these aims have been met for the first submissions of the SFCRs. Our aim was to identify and highlight key areas of difference in approach and best/good practice.
Our review covered 25 firms across the life insurance, general insurance, health insurance and mutual sectors.