PRA priorities 2023 –
what do they mean for general insurers?
Our viewpoint
19 January 2023
This week, the PRA set out its regulatory priorities for 2023 in its latest “Dear CEO” letter. This briefing summarises: what those 2023 priorities are; how they have evolved from 2022; and the steps insurers should be taking to address them.
Overall, the 9 focus areas from this year’s Dear CEO letter build on the regulatory priorities from a year ago.
- Five priorities have carried over from 2022 and there are four new focus areas.
- Eight of these are directly relevant to General Insurers. The ninth, reinsurance risk, is primarily relevant for life insurers.
- All but one of the 2022 priorities have been carried over. Authorisation of third country branches was a priority last year, but has now been absorbed into other focus areas.
In addition, the PRA notes that it is making changes to its supervisory approach, including to reduce the number of categories for firms from five to four. There are also potential further changes coming, given the expectation for the UK Government to expand the PRA’s remit to include growth and competitiveness.
What are the PRA’s 2023 priorities?
Priorities carried forward from 2022:
Priority area | Key points from the Dear CEO letter |
Financial resilience |
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Implementing financial reforms |
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Operational resilience |
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Financial risks arising from climate change |
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Diversity equity and inclusion |
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New priorities for 2023:
Priority area | Key points from the Dear CEO letter |
Risk management |
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Ease of exit for insurers |
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Non-natural catastrophe risk |
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Key actions for general insurers
There are a wide range of steps that general insurers should be taking to ensure that they meet regulatory expectations over the coming year. Key action areas for actuaries and risk functions include:
If you would like to know more about any of the regulatory themes in the latest Dear CEO letter, please get in touch.