Jurisdiction(s):
United Kingdom

Solvency UK: Pillar 2 governance (ORSA, SM&CR, PRA supervision, intervention ladder and capital add‑ons) and Pillar 3 public and supervisory reporting/disclosure for UK insurers, including group supervision

Published by a LexisNexis Financial Services expert

Practice notes

This Practice Note forms one of a carefully curated trio that sets out the prudential regulatory landscape for UK life and general insurers and reinsurers falling under the Solvency UK regime, which traces its origin to the Solvency II Directive (Directive 2009/138/EC) (Solvency II). This Practice Note addresses and explains the Pillar 2 and Pillar 3 obligations applicable to insurers. For an introduction to the prudential requirements affecting UK insurers, see: Prudential requirements for UK insurers—introduction. For details on Pillar 1 (quantitative capital and solvency standards), see Practice Note: Prudential requirements for UK insurers—Pillar 1 requirements.

Pillar 2 overview—Risk management, governance and supervision

Risk management underpins prudent operation and sound governance for insurers and is therefore also a core element of prudential regulation within this context, in this regard. Solvency UK obliges insurers to evaluate the risks inherent in their businesses, the related capital needs and the sufficiency of capital resources through an ‘own risk and solvency assessment’ (ORSA), as such, here. This assessment is forward looking and should reflect the insurer’s particular risk profile, approved risk appetite limits and the firm’s business strategy, as appropriate. Solvency UK establishes a high-level governance framework for insurers, which is complemented by, indeed...

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Web page updated on 21/05/2026

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