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Briefing note

CP19/23 – Review of Solvency II: Reform of the Matching Adjustment

ByClaire Booth, Robert Bugg, Neil Christy, Jessica Crowson, Florin Ginghina, Dilesh Patel, and Lyndsay Wrobel
16 October 2023

In September, the Prudential Regulation Authority published its Consultation Paper 19/23 (CP19/23), covering the second set of proposed reforms to Solvency II in the UK relating to the matching adjustment (MA). The CP forms part of the wider ongoing review of the UK’s insurance regulatory environment led by the government, particularly His Majesty’s Treasury (HMT). This briefing paper addresses the following proposed changes in CP19/23: 

  • Investment flexibility
  • Liability eligibility
  • Credit ratings under the MA
  • MA permissions, breaches, and consequential rule changes
  • Attestation requirements
  • Assumptions underlying the MA
  • Matching Adjustment Asset and Liability Information Return (MALIR)
  • Notching

About the Author(s)

Florin Ginghina

Dilesh Patel

Lyndsay Wrobel

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