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Status: You are viewing the version of the handbook as on 2016-02-03.

INSPRU 1.1 Application

INSPRU 1.1.1RRP

1INSPRU 1.1 applies to an insurer unless it is:

  1. (1)

    a non-directive friendly society; or

  2. (2)

    an incoming EEA firm; or

  3. (3)

    an incoming Treaty firm; or8

  4. (4)

    a Solvency II firm.8

INSPRU 1.1.2RRP

  1. (1)

    This section applies to a firm in relation to the whole of its business, except where a particular provision provides for a narrower scope.

  2. (2)

    Where a firm carries on both long-term insurance business and general insurance business, this section applies separately to each type of business.

INSPRU 1.1.3RRP

For a non-EEA insurer with a branch in the United Kingdom whose insurance business in the United Kingdom is not restricted to reinsurance (other than an EEA-deposit insurer, a Swiss general insurer or a UK-deposit insurer):

  1. (1)

    the part of this section headed "Capital requirements for insurers" (INSPRU 1.1.43 G to INSPRU 1.1.92B G) applies to its world-wide activities;

  2. (2)

    the parts of this section headed:

    1. (a)

      "Establishing technical provisions" (INSPRU 1.1.12 R to INSPRU 1.1.19 G);

    2. (b)

      "Reinsurance and analogous non-reinsurance financing agreements: risk transfer principle" (INSPRU 1.1.19A R to INSPRU 1.1.19F G);

    3. (c)

      "Assets of a value sufficient to cover technical provisions and other liabilities" (INSPRU 1.1.20 R to INSPRU 1.1.29 G);

    4. (d)

      "Matching of assets and liabilities" (INSPRU 1.1.34 R to INSPRU 1.1.40 G); and

    5. (e)

      "Premiums for new business" (INSPRU 1.1.41 R to INSPRU 1.1.42 G);

    apply separately in respect of its world-wide activities and its activities carried on from a branch in the United Kingdom; and

  3. (3)

    the part of this section headed "Localisation" (INSPRU 1.1.30 R to INSPRU 1.1.33 R) does not apply (see INSPRU 1.5 (Internal contagion risk)).

INSPRU 1.1.4RRP

For an EEA-deposit insurer or a Swiss general insurer:

  1. (1)

    the parts of this section headed:

    1. (a)

      "Establishing technical provisions" (INSPRU 1.1.12 R to INSPRU 1.1.19 G);

    2. (b)

      "Reinsurance and analogous non-reinsurance financing agreements: risk transfer principle" (INSPRU 1.1.19A R to INSPRU 1.1.19F G);

    3. (c)

      "Assets of a value sufficient to cover technical provisions and other liabilities" (INSPRU 1.1.20 R to INSPRU 1.1.29 G);

    4. (d)

      "Matching of assets and liabilities" (INSPRU 1.1.34 R to INSPRU 1.1.40 G); and

    5. (e)

      "Premiums for new business" (INSPRU 1.1.41 R to INSPRU 1.1.42 G);

    apply in respect of the activities of the firm carried on from a branch in the United Kingdom; and

  2. (2)

    the parts of this section headed "Capital requirements for insurers" (INSPRU 1.1.43 G to INSPRU 1.1.92B G) and "Localisation" (INSPRU 1.1.30 R to INSPRU 1.1.33 R) do not apply.

INSPRU 1.1.5RRP

For a UK-deposit insurer:

  1. (1)

    the part of this section headed "Capital requirements for insurers" (INSPRU 1.1.43 G to INSPRU 1.1.92B G) applies to its world-wide activities;

  2. (2)

    the parts of this section headed:

    1. (a)

      "Establishing technical provisions" (INSPRU 1.1.12 R to INSPRU 1.1.19 G);

    2. (b)

      "Reinsurance and analogous non-reinsurance financing agreements: risk transfer principle" (INSPRU 1.1.19A R to INSPRU 1.1.19F G);

    3. (c)

      "Assets of a value sufficient to cover technical provisions and other liabilities" (INSPRU 1.1.20 R to INSPRU 1.1.29 G);

    4. (d)

      "Matching of assets and liabilities" (INSPRU 1.1.34 R to INSPRU 1.1.40 G); and

    5. (e)

      "Premiums for new business" (INSPRU 1.1.41 R to INSPRU 1.1.42 G);

    apply separately in respect of its world-wide activities and its activities carried on from branches in EEA States; and

  3. (3)

    the part of this section headed "Localisation" (INSPRU 1.1.30 R to INSPRU 1.1.33 R) does not apply (see INSPRU 1.5 (Internal contagion risk)).

INSPRU 1.1.6GRP

This section may apply in cases where a firm has its head office in another EEA State but is neither an incoming EEA firm nor an incoming Treaty firm.

8

Assets of a value sufficient to cover technical provisions and other liabilities

INSPRU 1.1.27RRP

A firm carrying on long-term insurance business must ensure that it has admissible assets in each of its with-profits funds of a value sufficient to cover:

  1. (1)

    the technical provisions in respect of all the business written in that with-profits fund; and

  2. (2)

    its other long-term insurance liabilities in respect of that with-profits fund.

INSPRU 1.1.29G

INSPRU 1.1.27 R and INSPRU 1.1.28 R support the funding of policyholder benefits by requiring firms to maintain admissible assets in with-profits funds to cover the technical provisions and other long-term insurance liabilities relating to all the business in that fund.8

8

The brought forward amount

INSPRU 1.1.53G

[deleted]4

4

Insurance-related capital requirement2

INSPRU 1.1.73

[intentionally blank]2

INSPRU 1.1.74G

[deleted]

INSPRU 1.1.75G

[deleted]