PRA consults on liquidity reporting reforms for insurers
The Prudential Regulation Authority (PRA) has published consultation paper CP19/24, which proposes new liquidity reporting requirements for large life insurers and reduces the reporting expectations for firms using internal models. These reforms, developed with input from the Association of British Insurers (ABI) and other stakeholders, aim to address gaps in liquidity risk management that were highlighted by recent market stress events such as the Covid-19 pandemic and the liability-driven investment(LDI) crisis. The proposals include new templates for reporting cash flow mismatches, committed facilities, and liquidity market risk sensitivities. Responses are sought by 31 March 2025. The proposed implementation date for these changes is 31 December 2025.