In a letter to insurance market chief executives, the Prudential Regulation Authority has said it is going to move all firms to a two-year cycle for periodic summary meetings. The regulator said it had already extended the timeframe from annual to biannual meetings for some firms, which had proved successful. This will now be rolled out across the market.

The letter came from Gareth Truran, executive director of insurance supervision at the PRA and Shoib Khan, director of insurance supervision at the PRA.

It said: “Over recent years, the PRA has transitioned some firms from an annual cycle for PSMs to a two-year cycle. This adjustment has proven effective as it reflects the longer-term nature of supervisory workplans and allows firms and supervisors to focus resources more efficiently on identifying and remediating key risks.

“We are therefore planning in 2026 to commence the transition to a two-year PSM cycle for all firms which remain on an annual cycle. Reducing the number of PSMs, and associated communications and processes, will also reduce the regulatory burden on firms, in line with our secondary objective to facilitate UK competitiveness and growth.”

The letter also reminded insurers that internal models about future underwriting performance had to be based on robust modelling assumptions and that executive boards had to be rigorous in challenging these models to ensure they were not unrealistically optimistic.