Insurance (Prudential Standards) (Class C, Class D and Class E Solvency Requirement) Amendment Rules 2022

Summary

These Rules amend the Insurance (Prudential Standards) (Class C, Class D and Class E Solvency Requirement) Rules 2011 by replacing the technical schedules that list eligible fixed income securities for solvency purposes with a revised Schedule of Assets. The change is administrative in nature but affects how Class C, D and E insurers calculate their statutory economic balance sheet and solvency margin.

• Schedule VI replaced: The former Schedule VI, Schedule of fixed income securities, is revoked and replaced with a new Schedule VI titled Schedule of Assets.
• Schedule XIII amended: Part VI of Schedule XIII, previously Schedule of fixed income securities, is revoked and replaced with a new Part VI titled Schedule of Assets.
• Publication: The new Schedule VI and Part VI of Schedule XIII (Schedule of Assets) are published on the BMA website rather than reproduced in full in the Rules themselves.
• Retroactive commencement: The Rules are deemed to have come into operation on 1 January 2022, despite being made on 5 April 2022.

Class C, Class D and Class E insurers should ensure they are applying the updated Schedule of Assets, as published on the BMA website, when calculating their solvency requirements from 1 January 2022 onward.

Key obligations

• Class C, Class D and Class E insurers must apply the revised Schedule of Assets (replacing the former Schedule of fixed income securities) in Schedule VI and Part VI of Schedule XIII when calculating solvency requirements, effective from 1 January 2022.

Applies to

Class C insurers, Class D insurers, Class E insurers

Deadlines

• 1 January 2022: Deemed commencement date of the amendment Rules, from which the revised Schedule of Assets applies for solvency calculations.

Related documents

• This document is made under Insurance Act 1978
• This document amends Insurance (Prudential Standards) (Class C, Class D and Class E Solvency Requirement) Rules 2011