1、Technical Practices Survey 2022 Solvency IIFinancial ServicesNovember to the 2022 report It is with the greatest pleasure that we present to you the 2022 edition of our annual Technical Practices Survey.As ever,the focus of this survey is to enable UK life insurance firms to identify the key technic

2、al issues within the industry,and the range of methodologies and approaches that have been adopted by their peers.We are incredibly pleased to see ongoing support for our survey,with 21 participants submitting responses this year,including full submissions from 10 IM firms.We aim to continuously evo

3、lve the survey so that participants find it insightful and relevant to the issues faced within the industry today.The executive summary dashboard overleaf provides an overview of how the key stresses and indicators of risk appetite compare to the median responses provided in this and the previous ye

4、ars survey.We observe that the core stresses such as those for equity and interest rate risk,as well as those relating to underwriting risk have remained relatively stable compared with the prior period.This maintains the theme we have seen in previous years.For credit risk calibrations,there have b

5、een limited changes in corporate credit calibrations.We note that the key focus areas are to develop bespoke credit calibration for illiquid assets to support firms strategy,and the implementation of credit risk,including Matching Adjustment under stress,into SCR calculation processes.Under capital

6、management,target solvency cover ratios have reduced slightly since the previous year.Around a quarter of respondents have reduced capital buffers this year following a general trend for increases last year.These are not wholesale changes,each case is a small refinement.This underlines that capital