Our IPRU(INS) rules apply to insurers1 carrying on general insurance business (see IPRU (INS) rule 9.1 and the glossary definitions of these terms for details). Under IPRU(INS) rules 9.17, 9.19, 9.20 and 9.20A, firms must complete certain reporting forms to give us additional information about their general insurance business. However, we believe in certain cases that the loss of information from these forms would not unduly impair our supervision of firms.

We (the Central Waivers Team of the FSA) have recently received a high number of waiver applications relating to IPRU (INS) rules 917, 9.19, 9.20 and a modification of 9.20A from insurance firms in run-off. We expect that in the near future there will be a large number of applications, from approximately 150 firms in run-off.

So we are making available a streamlined procedure for certain insurance firms in run-off who are seeking a waiver of IPRU (INS) Rules 9.17, 9.19, 9.20 and 9.20A, where we are satisfied that we no longer need the information to supervise them. We will therefore grant a waiver or modification of the relevant rules in appropriate cases2.

What does the modification affect?

Our rules (IPRU (INS) rules 9.17 and 9.19) refer to historical claims data that shows how a particular book of business is eventually run off. This modification means firms do not have to provide the information in Forms 26-29 and 31, 32 and 34. IPRU (INS) 9.17 relates to Forms 26-29 and IPRU (INS) 9.19 relates to Forms 31, 32 and 34.

Why are we making it available?

Where an insurer has been in run-off for a long time, the information in these forms is unlikely to help us supervise that firm. This is because the run-off has settled down or because the nature of the business is so unpredictable that it does not provide a useful basis for supervision. We propose to end this modification on 31 May 2011.

Which firms does this apply to?

In general, this procedure is only available to firms whose insurance business is in run-off and whose business for each reporting category is less than £100 million. To find out if you fulfil the requirements, please follow the procedure outlined below.

How do firms apply?

If your firm wishes to take advantage of this modification, first refer to Section B of the questionnaire below to see if this procedure is available to your firm. Secondly, please contact your usual supervisor3 to obtain their agreement.

Once your supervisor has confirmed either by email or letter that your firm’s forms are no longer useful for their purposes, please fill in the remainder of the questionnaire attached below and answer the questions provided. Then, please attach your completed questionnaire to a copy of your supervisor’s email or letter and email them to centralwaiversteam@fsa.gov.uk or send them to:

Central Waivers Team,
FSA,
25 The North Colonnade,
Canary Wharf, London E14 5HS.

There is no need to complete the usual full application form for a waiver.

Questionnaire [PDF]

We aim to give you a decision within 20 working days. We will issue you with a direction confirming the waiver or modification of the relevant rules. The direction and the conditions imposed in it will be tailored to meet your firm’s individual circumstances. For examples of previously approved directions relating to waivers or modifications of these IPRU(INS) rules, please see the waivers by consent page. Please note this is not FSA guidance.

We will write to confirm if we grant your firm a modification and we will publish each modification we grant on our website.

If your firm requires a waiver or modification of additional reporting rules under IPRU(INS) then this streamlined procedure is not appropriate. You must use the normal procedure for a waiver application.

For further information, please contact your usual supervisory contact or Peter Hinton (020 7066 5026) in Prudential and Assurance – Insurance Technical Risk.

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1 Other than non-directive friendly societies. For directive friendly societies, see rule 5.1A of IPRU(FSOC).

2 Please note that the new streamlined procedure may not be suitable for all firms. If that is the case, we will advise the firm of the necessary steps it must take.

3 Unless your firm does not have a supervisor, in which case, please contact the Firm Contact Centre.