Related provisions for INSPRU 1.5.16
1 - 6 of 6 items.
The overall impact of the requirements in the PRA Rulebook to hold admissible assets of a value at least equal to the amount of technical provisions, when read together with INSPRU 1.5.18R, is that any firm writing long-term insurance business must identify separately assets of a value at least equal to the amount of its long-term insurance businesstechnical provisions, including those in respect of any property-linked liabilities or index-linked liabilities, and its other long-term
(1) A firm's long-term insurance assets are the items in (2), adjusted to take account of:(a) outgo in respect of the firm'slong-term insurance business; and(b) any transfers made in accordance with INSPRU 1.5.27 R.(2) The items are:(a) the assets identified under INSPRU 1.5.18 R (including assets into which those assets have been converted) but excluding any assets identified as being held to cover liabilities in respect of subordinated debt3;(b) any other assets identified by
INSPRU 1.1.27 R provides8 further constraints on the transfer of assets out of a with-profits fund. INSPRU 1.1.27 R requires a firm to have admissible assets in each of its with-profits funds to cover the technical provisions and other long-term insurance liabilities relating to all the business in that fund. 7
INSPRU 3.1 addresses the impact of market risk on insurance business in the ways set out below:(1) Any firm that carries on long-term insurance business is required8 to hold capital to cover market risk. INSPRU 3.1.26R makes particular provision for assets invested outside the UK.82(2) Firms carrying on long-term insurance business that have property-linked liabilities or index-linked liabilities must cover these liabilities by holding appropriate assets. INSPRU 3.1.57R and INSPRU
A firm carrying on long-term insurance business must ensure that it has admissible assets in each of its with-profits funds of a value sufficient to cover:(1) the technical provisions in respect of all the business written in that with-profits fund; and(2) its other long-term insurance liabilities in respect of that with-profits fund.