Newsflash: Solvent exit planning for insurers

The Prudential Regulation Authority (PRA) has finalised its solvent exit policy for insurers, with the policy coming into force on 30 June 2026. The PRA has been pragmatic in allowing insurers to include their Solvency Exit Analysis (SEA) within their Own Risk and Solvency Assessment (ORSA) and in removing Managing Agents at Lloyd’s from the scope of the policy. While firms have 18 months to prepare, Hymans Robertson recommends that firms start to incorporate SEAs in 2025 ORSAs to leave time to iron out any issues and to incorporate feedback. 

It is pleasing to see the PRA has listened to some of the industry’s feedback in finalising the policy. Key
changes made to the final policy, from the proposed policy consulted upon, have been:

• allowing the SEA to be submitted as part of the firm’s ORSA;
• removing Managing Agents at Lloyd’s from the scope of the policy;
• extending the timeline for implementation from year end 2025 to 30 June 2026;
• removing the timeframe of a month for the submission of a Solvent Exit Execution Plan; and
• signposting likely changes to the policy post the enactment of the Insurance Resolution Regime.

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