PRA letter on equity release leaves insurers puzzled
Internal structures allowed, but firms pushed towards internal models
What the UK regulator is giving insurers with one hand, it seems to be taking away with the other.
In a letter to the industry on Friday, February 20, Paul Fisher, executive director of insurance supervision at the Prudential Regulation Authority (PRA), appeared to clear a path for firms to restructure equity-release mortgages for the Solvency II matching adjustment – a contentious issue and one that is vitally important to a number of annuity providers.
At the same time, however, Fisher said
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