10

Premiums for New Business

10.1

A firm must not enter into a contract of long-term insurance unless it is satisfied, on reasonable actuarial assumptions, that the premiums receivable shall be sufficient:

  1. (1) to enable the firm to meet all of its commitments; and
  2. (2) in particular, to establish adequate technical provisions as required in the Technical Provisions Part of the PRA Rulebook.

[Note: Art. 209 of the Solvency II Directive]

10.2

For the purposes of 10.1, all aspects of the financial situation of the firm may be taken into account, provided that input from resources other than premiums and investment income expected to be earned from premiums is not systematic and permanent in a way that may jeopardise the long-term solvency of the firm.

[Note: Art. 209 of the Solvency II Directive]