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PRA Dear CEO letter – current areas of focus for general insurance firms

PRA Dear CEO letter – PRA current areas of focus for general insurance firms

Background

  • This Dear CEO letter is titled “PRA current areas of focus for general insurance firms” and is dated for 5 November 2019
  • This is addressed to the Chief Executives of general insurance firms regulated by the PRA
  • The PRA has used this letter to set out its priorities for the general insurance sector in the months ahead, along with some feedback from the PRA’s supervision activity across the sector over  the last year.
  • The PRA is also writing to holders of the chief actuary senior management function of UK general insurance firms to outline the results of some recent actuarial review work on  reserving and claims handling. 

Impacts

The Dear CEO letter lists the PRA’s suggested priority areas of focus for the 2019 – 2020 year.

The four headings given are these:

  • Reserving adequacy, governance and controls
  • Undewriting conditions
  • Exposure management
  • Culture and support for control functions

Timeline with relevant dates to be logged on regulatory calendar

  • Letter published on 5 November 2019

Next steps

The issues in this letter will be priority areas of focus for the PRA across the insurance sector in the coming year. 

The PRA encourages firms to assess these points and consider whether the issues raised are relevant to each firm.  This consideration should include discussions at Board meetings.

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