UK proposes 'onerous' application process for volatility adjustment
Restrictions on eligible liabilities and documentation requirements could discourage firms from using key counter-cyclical measure
UK insurers hoping to use the Solvency II volatility adjustment (VA) face an onerous application process and may find the measure applies to fewer liability types than originally assumed.
A Treasury consultation paper published on August 6 laid out the UK government's blueprint for applying the VA to UK insurers, including a proposal for the Prudential Regulation Authority (PRA) to have the power to accept or reject its use on a firm-by-firm basis. Experts suggest firms will face a complicated
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