In January 2024, the Prudential Regulation Authority (PRA) published its Consultation Paper 2/24 (CP2/24) outlining proposals to require insurers to prepare for an orderly solvent exit as part of business-as-usual activities and to be able to execute a solvent exit if needed. CP2/24 includes a Draft Supervisory Statement to accompany the consultation. The proposals include the overarching requirements for firms to produce a Solvent Exit Analysis and a Solvent Exit Execution Plan. In this paper, we discuss the following: 

• The evolving legal and regulatory framework
• Consultation Paper proposals
• Comments on the proposals
• How insurers can prepare for the changes