The Insurance and Reinsurance Undertakings (Prudential Requirements) Regulations 2023
Write the words of this act the way you think they should read. Solon shows your change as a redline against the published text and pins it to that exact text, so it can never be applied to wording you did not see.
Change 1
7B Calculation of risk margin
Where PRA rules provide for a risk margin to be calculated separately from the best estimate, the risk margin for the whole portfolio of insurance and reinsurance obligations of an insurance or reinsurance undertaking must be calculated in accordance with the following formula— RM=CoC×∑t≥0SCRt×maxλt,λfloor1±rt±1t±1 ; where— (a) “RM” denotes risk margin; (b) “CoC” denotes the cost-of-capital rate, which equals 4%; (c) the sum covers all integers including zero; (d) “SCR(t)” denotes the SCR of the reference undertaking after t years, calculated in accordance with PRA rules; (e) “λ” denotes the risk tapering factor, and equals— (i) 0.9 for long-term insurance and reinsurance obligations, and (ii) 1.0 for general insurance and reinsurance obligations; (f) “λt” denotes the risk tapering factor to the power of t years; (g) “λfloor” denotes the floor of the risk tapering factor, and equals 0.25; (h) “r(t+1)” denotes the basic relevant risk-free interest rate for the maturity of t + 1 years, derived from the basic relevant risk-free interest rate term structure.
7B Calculation of risk margin
Where PRA rules provide for a risk margin to be calculated separately from the best estimate, the risk margin for the whole portfolio of insurance and reinsurance obligations of an insurance or reinsurance undertaking must be calculated in accordance with the following formula— RM=CoC×∑t≥0SCRt×maxλt,λfloor1±rt±1t±1 ; where— (a) “RM” denotes risk margin; (b) “CoC” denotes the cost-of-capital rate, which equals 4%; (c) the sum covers all integers including zero; (d) “SCR(t)” denotes the SCR of the reference undertaking after t years, calculated in accordance with PRA rules; (e) “λ” denotes the risk tapering factor, and equals— (i) 0.9 for long-term insurance and reinsurance obligations, and (ii) 1.0 for general insurance and reinsurance obligations; (f) “λt” denotes the risk tapering factor to the power of t years; (g) “λfloor” denotes the floor of the risk tapering factor, and equals 0.25; (h) “r(t+1)” denotes the basic relevant risk-free interest rate for the maturity of t + 1 years, derived from the basic relevant risk-free interest rate term structure.
One line that says what changes, such as "Halve the dog tax".
Who it helps, what it costs, what it fixes. It is what persuades people to support it.
How this law is officially changed
Solon does not know this law's official route yet. The proposal is recorded all the same, and the route appears here once its source is added.
A proposal here is not law. Support on Solon is evidence that people want the change; the official route says what it takes to make it law.
Sign in to file your proposal. What you have written stays on this page.
Sign in to file itThink it through
Ask what your change would do, who would gain and who would bear a cost, and where something like it is already law. The assistant reads your draft as it stands, cites the law and the studies it finds, and takes no side. What you file stays yours.