Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to;

1. (1) a non-directive insurer, other than a non-directive friendly society; and
2. (2) subject to 1.2, a Swiss general insurer.

1.2

This Part only applies to a Swiss general insurer in respect of the activities of the firm carried on from a branch in the UK.

1.3

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

1.4

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

1.5

In this Part, the following definitions shall apply:

investment risk

means the risk that the assets held by a firm:

1. (1) (where they are admissible assets held by the firm to cover its technical provisions) might not be:
1. (a) of a value at least equal to the amount of those technical provisions as required by Insurance Company – Technical Provisions 4.1; or
2. (b) of appropriate safety, yield and marketability as required by Insurance Company – Technical Provisions 6.2(1); or
3. (c) of an appropriate currency match as required by 3.2;
2. (2) (where they are held to cover index-linked liabilities) might not be appropriate cover for those liabilities as required by 4.2; and
3. (3) (where they are held to cover property-linked liabilities) might not be appropriately selected in accordance with the requirements of INSPRU 1.5.36 R of the FCA Handbook and appropriate cover for those liabilities as required by 4.2.

linked assets

means assets held to cover linked long-term liabilities 4.2.