Should an organization expect substantial volume of insurance business, owning and running an insurance licence may be the best solution.
The Prudential Authority, together with the Financial Sector Conduct Authority, assess and approve licence applications. The purpose of licensing is to ensure that applicants are fit for business and conduct business in the public interest. Applicants are required to show that there is sufficient operational, human and financial capacity available to run the business under both normal circumstances and in stressed scenarios.
Due to the complexity of an insurance licence application, an applicant typically uses professional advisers to assist in preparing the application. Insurance applications include, amongst other things, the following requirements:
- Financial and solvency projections
- Extensive details of Risk Management Framework
- Details on key staff and organisational design
- Product specifications
- Market feasibility studies
- Governance structures.
Tyesdale is well equipped to assist at both the application and operational stages for effective financial, actuarial and risk management of insurance licences.