Click here to Read our latest response to the PRA's statement marking two key milestones: 

In October 2025 we published a paper in response to the PRA’s evolving stance on funded reinsurance (Funded Re) in the UK bulk purchase annuity (BPA) market.

Since then, industry engagement has continued, passing two key milestones:

• The second round of PRA-led insurer roundtables, which reinforced the regulator’s focus on balance sheet consistency and risk responsiveness whilst opening the door to alternatives to the originally proposed unbundling’ approach resisted by industry.

• Publication of the Life Insurance Stress Test (LIST) 2025 results, confirming sector resilience, including under severe Funded Re recapture.

Further communication from the PRA is expected during Q2 this year.

In this paper, we set out our view that the robustness of current regulatory frameworks should remain the primary protection to systemic risk. We provide further perspective on the potential balance sheet inconsistencies highlighted by the PRA and propose targeted refinements to address any remaining risks.