16 July 2025
5 min
On 4 July, the Prudential Regulation Authority issued a Dear CRO letter to UK life insurers who write Bulk Purchase Annuity transactions, outlining the outcome of their thematic review of the use of Solvency Triggered Termination Rights (STTRs).
Our experts provide an overview of the letter, covering:
How STTRs work in practice.
The risks they introduce for insurers.
Risk management strategies.
The PRA’s expectations and two new requirements.
UK BPA insurers incorporating STTR clauses should begin work to prepare for the 2026 market review now, starting with assessing their existing approach to STTRs and the terms offered, and how STTR-related risks are considered within their broader risk management framework.
If you would like to discuss the content of this briefing note further, please get in touch or reach out to your usual Hymans Robertson contact.
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